After a marathon 30 hours of negotiation the Federal Cabinet reached an agreement on the 2024 budget at around 7pm on Monday. The 1.2 billion euro in savings and additional income that ministers set out to find has been found the Federal Prime Minister Alexander De Croo (Flemish liberal) said at a press conference on Monday evening.
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Budget agreement reached after 30 hours of talks
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Although agreements were already made last year about the 2024 budget, the Federal Government has now announced additional measures that are necessary to reduce the 18.5-billion-euro budget deficit.
At Monday evening’s press conference Mr De Croo said that "The agreement we have reached further improves the federal budget balance. It also provides for a number of crucial investments that we need and offers various solutions to help fill the many jobs vacancies we have in the country. It will make the country more prosperous, sustainable and secure.”
The most striking measures
• The flexi-job system, whereby those that work at least 80% or are retired can take on tax-free job in an industry where there are labour shortages, is being expanded. Until now, you could mainly work as a flexi-job worker in the catering industry and in shops. From next year 12 additional sectors, including education, childcare and agriculture will be added to the list. This should make it possible for employers to recruit staff more quickly and easily in sectors where there is a shortage of labour.
• The minimum wage will be increased from 1 April 2024.
• The banking tax will be increased. This should yield 150 million euro for the federal coffers. The lion’s share of this will come from higher taxes on the exceptionally high profits made last year by the four big high street banks Belfius, BNP Paribas Fortis, KBC and ING.
• The Cayman tax will be increased in order to address the issue of tax evasion through the use of shell companies in tax havens.
• The VAT rate for the demolition and reconstruction of a private citizen’s home remains at 6%. The rate for developers will be raised back up to 21%.
•The amount that those that use diesel for professional ends can claim back in excise duty will be reduced by 10 euro per 1,000 litres.
• The level of excise levied on tobacco and vaping products will be increased.
• Contracts between the Federal Government and the Belgian post office bpost will be reviewed in an effort to cut costs.
• Additional investments will be being made in scanners for the Customs Service, VAT will be reduced on heat pumps, the possible extension of the working life of the country’s remaining nuclear reactors will be examined. In the fight against crime extra ANPR cameras will be installed, there will be extra funding for the Civil Protection Agency, care centres for the victims of sexual violence and for the reception of asylum seekers.
• The police will receive the pay increase that they were supposed to have been given this year before it was postponed a little faster. They will receive 45% of the promised amount in this month and the rest in October 2024.
• Young people that sign up to do community service will receive of 550 euro/month. The voluntary community service scheme gives young people the opportunity to commit themselves for six months to a year to, for example, work in the care sector, the world of cultural or at a project that encourages sustainability.
This was the final budget before next year’s federal, regional and European elections.