Further improvement public finances

Government revenue from taxes and social contributions over Q1 2016 and the last three quarters of 2015 was higher than in the four quarters of 2015. According to Statistics Netherlands (CBS), public deficit and public debt, both expressed as a percentage of gross domestic product (GDP), decreased.
Public deficit over Q1 2016 plus the three preceding quarters amounted to 1.6 percent of GDP. According to EU regulations, public deficit for an entire calendar year should not exceed 3 percent of GDP. Public deficit over the entire year 2015 stood at 1.9 percent.

By the end of Q1 2016, public debt was 442 billion euros, more or less equal to the end of 2015. As GDP over Q1 increased, the debt ratio declined by 0.3 percentage points to 64.8 percent of GDP. As a result, the debt-to-GDP ratio fell further towards the EU target of 60 percent of GDP.
Public deficit and public debt on an annual basis
Public deficit and public debt on an annual basis
 EMU criteriaPublic deficit (left-hand axisDebt-to-GDP ratio (right-hand axis)
2006 I 30.148.7
2006 II3-0.348.1
2006 III3-0.147.1
2006 IV3-0.244.8
2007 I 3-0.445.1
2007 II3045.4
2007 III30.344.3
2007 IV3-0.242.7
2008 I 3-0.343.6
2008 II3-0.343.6
2008 III3-0.544.1
2008 IV3-0.254.8
2009 I30.957.7
2009 II32.156.8
2009 III33.757.3
2009 IV35.456.9
2010 I35.657.7
2010 II35.659.3
2010 III35.659.2
2010 IV3559.3
2011 I34.459.4
2011 II34.560.4
2011 III33.961
2011 IV34.361.6
2012 I34.262.5
2012 II3464
2012 III34.365.1
2012 IV33.966.4
2013 I3366.7
2013 II32.768.4
2013 III32.467.9
2013 IV32.467.7
2014 I3367.2
2014 II3368.6
2014 III32.768.1
2014 IV32.367.9
2015 I32.169.1
2015 II32.167
2015 III32.166.2
2015 IV31.965.1
"16 I31.664.8


More government revenue in Q1

On an annual basis, public revenue totalled 294 bn euros, i.e. more than 1 bn euros above the total over 2015. Revenues from corporate tax, VAT and social contributions increased in particular, to 3 bn euros. Non-tax revenue declined by 2 bn euros, mainly due to lower revenue from natural gas.

Higher revenue from taxes and social contributions increased the burden imposed by taxes and social insurance contributions, measured as a percentage of GDP. The burden imposed by taxes and social insurance contributions has risen steadily over the past few years. Since 2014 the burden has been in excess of 37 percent, versus 34.5 percent in 2004.

With 305 bn euros, public expenditure was almost equal to 2015. The government spent less on goods and services; public investments were also below the level of the same quarter last year. Interest costs and government contributions to the European Union also decreased. Wages and benefits rose in Q1 2016.
Public revenue and public expenditure on an annual basis
Public revenue and public expenditure on an annual basis
 Public revenuePublic expenditure
2006 I 235.5236.1
2006 II242.5241
2006 III246.2245.6
2006 IV250.5249.3
2007 I 254.6252.4
2007 II255255
2007 III255.7257.5
2007 IV261.6260.4
2008 I 267.4265.6
2008 II272.2270.2
2008 III276.8273.6
2008 IV279.8278.4
2009 I277.8283.3
2009 II273.1286
2009 III269.8292.7
2009 IV263.9297.5
2010 I264.1298.5
2010 II268.4303.2
2010 III268.4303.7
2010 IV272.6304.1
2011 I275.7303.8
2011 II274.2303.3
2011 III277.8302.9
2011 IV274.4302
2012 I275.2302.6
2012 II277.5303.1
2012 III276.2303.7
2012 IV278.8303.9
2013 I281.7301.3
2013 II284.1301.5
2013 III287302.4
2013 IV286.5302
2014 I286305.9
2014 II287.3306.9
2014 III288.3305.9
2014 IV291.2306.2
2015 I292.6306.4
2015 II291.6305.8
2015 III291.7305.6
2015 IV292.6305.4
"16 I293.8304.9

Sources