Finance ministry focuses on cost-cutting measures

PHILIPSBURG — Cost-cutting measures top the list of priorities at the Ministry of Finance, it appears from Minister Ardwell Irion’s presentation about the 2021 budget to Parliament. Focus points are fuel consumption and expenditures linked to the use of mobile phones.

The draft budget closes with a deficit of 241.8 million guilders ($135.1 million), based on 613.1 million ($342.5 million) in expenditures and 371.3 million ($207.4 million) in projected revenue.

For the next five years, the draft budget presents a rather rosy picture of Gross Domestic Product (GDP). It is projected to increase by 55.6 percent from 1.8 billion guilders in 2021 to 2.9 billion in 2026. Over the same years, the ministry expects state revenue to increase by 46.6 percent from 371 to 544 million guilders ($303.9 million).

Compared to the 2020 budget, expenditures in 2021 increase from 570 to 613 million guilders. Most of the increase is due to higher costs for goods and services (from 133 to 158 million) and subsidies and grants (from 180 to 202 million).

Minister Irion reported that the government had 28 million guilders in liquidity per June 20 and that the fifth tranche of liquidity support boosted it to 67 million. Accounts payable for the month of June amount to 20 million guilders. This indicates that the treasury will hit rock bottom sometime in September unless the Netherlands provides the sixth tranche of liquidity support.

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Related articles and links:
Subsidies take up one third of 2021 budget
Download the presentation of the draft 2021 budget to Parliament here>>>