At press conference on Monday the new Flemish Budget and Finance Minister Ben Weyts (nationalist) outlined how the new government intends to finance its plans during the coming years.
Earlier on Monday, the new Flemish Prime Minister Matthias Diependaele (nationalist) announced 3 billion euro of investments to help create what the new Flemish government describes as “a warm Flanders”. A large portion of this will go to welfare with investments totalling 1 billion euro being planned between now and 2029. Of this 478 million euro will be invested to shorten waiting lists for people living with a handicap.
Childcare facilities will receive an additional 200 million euro. This will be used to create an additional 10,000 places in childcare facilities across Flanders and Brussels. However, given the difficulties existing childcare facilities have finding staff, the question is whether the creation of so many additional places is realistic. An additional 80 million euro will go to the prevision of childcare at schools in the mornings before school starts and in the afternoons after school has finished. However, this provision must focus on activities that promote and strengthen childrens’ knowledge of Dutch.
Elderly care will be given an additional 140 million euro, while 120 million euro will be invested in services that provide help, care and guidance to young people.
During the next 2 years 200 million euro will be invested in further digitalisation. 70 million euro will be invested in the provision of healthy meals at school. However, Mr Weyts said that schools won’t be obliged to hand out healthy food, but schools that have issues with the provision of health food can request funding on condition that their local authority also makes a contribution.
The budget for major infrastructure works in the coming years will rise to 476 million euro in 2029. This does not include the work on the Oosterweel Link in Antwerp that is still excluded from the budget. The Flemish public transport company De Lijn will get a on-off addition subsidy of 400 million euro next year. This will be used in part to buy new buses.
180 million euro/annum extra will be invested in school construction projects and 100 million euro will be invested in care facility infrastructure. The reform of inheritance tax will cost 350 million euro and the reduction in the level of the registration fee paid when you buy a property in Flanders will cost the Flemish exchequer 190 million euro.
Savings and additional income
The Flemish Budget and Finance Minister explains that the Flemish Government will get the money to finance the measures listed above by making saving and from fresh sources of income. Ballancing the books remains a priority. The Flemish government expects to draw 1 billion euro from efficiency savings. The rest will come from elsewhere.
The so-called ‘Job Bonus’ a sum of 700 euro/annum paid out to those on the lowest incomes will be scrapped. This will save the Flemish government 200 million euro/annum.
The price of service cheques, vouchers that can be exchanged as payment for domestic held (cleaning, ironing,…) will increase by 1 euro and the purchase of the cheques will no longer be tax deductible.If inflation increases significantly during the legislature, the Flemish Government reserves the right to increase the price of service cheques by another 1 euro. The measure should save the Flemish government 270 million euro by 2029.
The replacement of separate religious education (or secular studies) lesson according to faith with lessons in “inter-faith dialogue” should save the Flemish Government 100 million euro/annum. The measure applies only to Flemish Community schools (GO!) and municipal schools both primary and secondary. The new Flemish Education Zuhal Demir will also need to find 159 million euro in saving in secondary education.
A significant reform of road tax is on the way. A road tax disk for foreigners using our roads will be introduced. This should raise 130 million euro/annum from 2027. The new system will be introduced in consultation with Wallonia that has similar plans.
Owners of electric cars will now have to pay a tax on when they first register their vehicle (biv) and road tax. Road pricing charges for trucks are set to rise. This will raise 140 million a year by the end of the legislature.