Government deficit of 3 billion euros in first half of 2025
This is the first time in four years that the government has been in the red in the first half of the year. At the end of the first half of 2024, there was a surplus of 2 billion euros.
Expressed as a percentage of gross domestic product (GDP), the budget deficit for the first half of 2025 came to 1.4 percent on an annualised basis. The Ministry of Finance’s Budget Memorandum for 2026 assumes a deficit of 25 billion euros for the whole of 2025, or 2.1 percent GDP.
| Jaar | First half (billions euros) | Second half (billions euros) |
|---|---|---|
| '08 | -1.1 | 0.7 |
| '09 | -13.1 | -18.8 |
| '10 | -16.9 | -17.2 |
| '11 | -13.5 | -15.5 |
| '12 | -10.2 | -15.1 |
| '13 | -5.9 | -13.2 |
| '14 | -6.6 | -8.2 |
| '15 | -4.8 | -8.0 |
| '16 | 1.9 | -0.3 |
| '17 | 7.2 | 2.9 |
| '18 | 12.1 | -0.4 |
| '19 | 13.3 | 2.5 |
| '20 | -12.2 | -18.1 |
| '21 | -9.9 | -10.3 |
| '22 | 9.3 | -9.3 |
| '23 | 2.6 | -6.5 |
| '24* | 1.8 | -12.4 |
| '25* | -3.2 | |
| * provisional figures | ||
Spending has risen more rapidly than revenues
Government spending increased by nearly 15 billion euros in the first half of 2025 compared to the same period last year. Benefits payments were up by nearly 8 billion euros, or 6 percent. This was mainly due to an increase in the cost of state pensions and health care. Remuneration for public servants and government investment both increased by 3 billion euros in the first half of 2025, or by 7 percent and 14 percent, respectively. Investment increased in large part due to purchases of military equipment.
Government revenues also increased in the first half of 2025, by nearly 10 billion euros or 4 percent. Even so, the increase in revenues was exceeded by the increase in expenditure.
Taxes and premiums accounted for most of the increase, at 9 billion euros. Other revenues rose by nearly 1 billion euros. This was mainly due to increased government receipts from interest-linked revenues and funds from the European Union provided to support the recovery of the Dutch economy following the Covid pandemic and the energy crisis.
| Jaar | Halfjaar | Revenue (billion euros) | Expenditure (billion euros) |
|---|---|---|---|
| '08 | First half | 143.7 | 144.8 |
| '08 | Second half | 144.2 | 143.5 |
| '09 | First half | 137.7 | 150.8 |
| '09 | Second half | 135.6 | 154.4 |
| '10 | First half | 141.0 | 157.9 |
| '10 | Second half | 139.1 | 156.3 |
| '11 | First half | 144.5 | 158.0 |
| '11 | Second half | 139.9 | 155.4 |
| '12 | First half | 147.2 | 157.4 |
| '12 | Second half | 141.1 | 156.2 |
| '13 | First half | 153.4 | 159.3 |
| '13 | Second half | 143.9 | 157.1 |
| '14 | First half | 154.3 | 160.9 |
| '14 | Second half | 148.1 | 156.3 |
| '15 | First half | 155.6 | 160.4 |
| '15 | Second half | 148.0 | 155.9 |
| '16 | First half | 162.7 | 160.8 |
| '16 | Second half | 155.2 | 155.5 |
| '17 | First half | 169.2 | 161.9 |
| '17 | Second half | 162.1 | 159.1 |
| '18 | First half | 179.0 | 166.9 |
| '18 | Second half | 166.9 | 167.3 |
| '19 | First half | 188.5 | 175.1 |
| '19 | Second half | 176.7 | 174.2 |
| '20 | First half | 181.0 | 193.2 |
| '20 | Second half | 179.0 | 197.2 |
| '21 | First half | 194.6 | 204.4 |
| '21 | Second half | 194.5 | 204.7 |
| '22 | First half | 216.6 | 207.3 |
| '22 | Second half | 213.4 | 222.7 |
| 23 | First half | 231.0 | 228.3 |
| 23 | Second half | 227.2 | 233.7 |
| '24* | First half | 246.1 | 244.2 |
| '24* | Second half | 241.8 | 254.3 |
| 25* | First half | 255.6 | 258.8 |
| * provisional figures | |||
Debt-to-GDP ratio remains low by historical standards
Total public debt stood at 492 billion euros at the end of the first half of 2025, up by nearly 1 billion euros compared with the end of 2024. Despite the increase in debt expressed in terms of euros, the debt ratio, government debt as a percentage of GDP, fell to 42.7 percent. This was because the overall size of the Dutch economy grew by more than government debt, in relative terms. The debt-to-GDP ratio remains close to its lowest point in the past 30 years. The only quarter in which the debt-to-GDP ratio lower was Q3 2024. In its 2026 Budget Memorandum, the Ministry of Finance assumes that public debt will continue to rise in the second half of the year to 533 billion euros, or 44.9 percent GDP.
| Jaar | Kwartaal | EMU standard (% of GDP) | Debt-to-GDP ratio (% of GDP) |
|---|---|---|---|
| '08 | First half | 60.0 | 43.6 |
| '08 | Second half | 60.0 | 54.3 |
| '09 | First half | 60.0 | 56.3 |
| '09 | Second half | 60.0 | 56.3 |
| '10 | First half | 60.0 | 58.8 |
| '10 | Second half | 60.0 | 58.9 |
| '11 | First half | 60.0 | 60.0 |
| '11 | Second half | 60.0 | 61.2 |
| '12 | First half | 60.0 | 63.5 |
| '12 | Second half | 60.0 | 65.7 |
| '13 | First half | 60.0 | 67.8 |
| '13 | Second half | 60.0 | 67.2 |
| '14 | First half | 60.0 | 68.0 |
| '14 | Second half | 60.0 | 67.2 |
| '15 | First half | 60.0 | 66.0 |
| '15 | Second half | 60.0 | 63.8 |
| '16 | First half | 60.0 | 62.3 |
| '16 | Second half | 60.0 | 60.9 |
| '17 | First half | 60.0 | 57.9 |
| '17 | Second half | 60.0 | 56.0 |
| '18 | First half | 60.0 | 53.2 |
| '18 | Second half | 60.0 | 51.6 |
| '19 | First half | 60.0 | 50.0 |
| '19 | Second half | 60.0 | 47.7 |
| '20 | First half | 60.0 | 54.0 |
| '20 | Second half | 60.0 | 53.4 |
| '21 | First half | 60.0 | 52.9 |
| '21 | Second half | 60.0 | 50.5 |
| '22 | First half | 60.0 | 48.6 |
| '22 | Second half | 60.0 | 48.4 |
| 23 | First half | 60.0 | 45.8 |
| 23 | Second half | 60.0 | 45.8 |
| '24* | First half | 60.0 | 43.8 |
| '24* | Second half | 60.0 | 43.7 |
| 25* | First half | 60.0 | 42.7 |
| * provisional figures | |||
The government balance and the debt-to-GDP ratio are important indicators for the state of a country’s public finances. The European convergence criteria permit a maximum deficit of 3 percent of GDP in a given year, and a maximum debt level of 60 percent of GDP as at the end of that year.
Sources
- StatLine - Government Finance Statistics; key figures