A report by the Budget Monitoring Committee, says that the Federal Government will have to make an additional 4.9 billion euro in savings by 2029 in order to its obligations to the European Commission with regard to the budget deficit.
This is considerably more than the between 3 and 4 billion euro the Belgian Prime Minister Bart De Wever (Flemish national) has mentioned previously. The figure could rise further due to the consequences of the war in Iran.
Monitoring Committee’s report traditionally marks the start of the budget review. The Federal Budget Minister Vincent Van Peteghem (Flemish Christian democrat) says that the review will start as early as today (Tuesday 24 March). Working parties comprising technical experts will then meet to discuss the options.
The figures they are faced with make grim reading. Before the end the legislature, the Federal Government will still need to find the equivalent of 0.67% of GDP in savings and/or additional in order to meet the budget deficit norms set by the EU. This amounts to 4.9 billion euro.
The figures don’t take into account the consequences of the war in Iran that could lead to slower economic growth.
The Monitoring Committee’s figures are considerably higher than figures (3 to 4 billion euro) put forward by the Prime Minister last month.
Taking into account the agreements contained the multi-year budget agreed at the end of last year, the Federal government is already 1.4 billion euro behind schedule.
The federal budget deficit is rising further from 3.7% to 3.8% of GDP. This is mainly due to the failure to implement certain measures, such as those relating to VAT. Tax revenues are 500 million euro short.