Government revenue, expenditure and debt surpass 500 billion euros

© Hollandse Hoogte / Peter Hilz
  • The government spent 19 billion euros more than it received in revenue in 2025.
  • The public spending deficit was more than twice as high as in 2024, at 1.6 percent of GDP.
  • Total public debt rose to 44.4 percent of GDP.

Government expenditure amounted to 529 billion euros in 2025, and the government spent 19 billion euros more than it received in revenue. The publc spending deficit (general government balance) for 2025 corresponded to 1.6 percent of gross domestic product (GDP). In 2024, the deficit was 0.7 percent. Total government debt stood at 524 billion euros at the end of 2025, up by 32 billion euros year on year. Government debt rose from 43.8 percent to 44.4 percent of GDP. This is reported by Statistics Netherlands (CBS) based on the first provisional figures on the Netherlands’ public finances for 2025.

The government deficit for 2024 has been revised downwards by 0.2 percentage points of GDP. The public spending deficit (general government balance) and total public debt are the main indicators of the current state of public finances.

 

Investment and transfers abroad rose relatively sharply

As in recent years, government expenditure rose faster than GDP in 2025. Spending for 2025 amounted to 529 billion euros, a year-on-year increase of 32 billion euros. Almost half of this was made up of spending on social benefits and healthcare, which increased by 14 billion euros in 2025. The government spent 7 billion more on public sector workers, accounting for around one-fifth of public expenditure. International transfers rose by nearly 40 percent to 18 billion euros. This amount includes sums sent to the European Commission, development aid and support for Ukraine. Investments in fixed assets also rose relatively sharply, by 4 billion euros (12 percent), partly due to the procurement of military equipment.

Significantly higher revenue from inheritance tax, gift tax and property transfer tax, less from duties on tobacco

Government revenue rose by 22 billion euros to 510 billion euros, in 2025. Of this increase, 21 billion euros came from taxes and contributions and 1 billion from other revenues, such as interest, dividends and transfers from the European Commission.

Revenues from the three primary forms of tax – VAT, corporation tax and payroll and income taxes – were up by 11 billion euros year on year. Revenues from corporation tax, in particular, saw a more significant of 10 percent. Revenues from employer contributions and health insurance premiums generated 7 billion euros (8 percent) more than they did in 2024. Among the other types of tax, inheritance and gift tax and property transfer tax saw the largest increases. These generated 20 percent and 23 percent more than they did in 2024, amounting to 0.7 billion euros and 0.9 billion euros, respectively. Meanwhile, revenue from tobacco duties fell by 0.4 billion euros (15 percent) in 2025.

 

Debt up by 32 billion euros

Total public debt stood at 524 billion euros at the end of 2025. That was a year-on-year increase of 32 billion euros, and amounts to an increase of approximately 1,800 euros per inhabitant. The increase is not only due to the 19-billion-euro spending deficit, but largely also due to a net outflow of funds for financial transactions. In particular, government loans to TenneT (the state-owned company responsible for the high-voltage grid), totalling 12 billion euros, contributed to this. Loans, like other financial transactions, do not directly affect the government deficit, but they do affect government debt because the loans have to be financed.

Financial transactions were also a source of revenue for the government, but spending in this area was much higher. Among the sources of revenue was the sale of ABN AMRO shares, which yielded 2 billion euros for the treasury.

While in previous years (with the exception of the pandemic year, 2020), GDP grew faster than public debt, this was not the case in 2025. The debt-to-GDP ratio therefore rose from 43.8 percent of GDP at the end of 2024 to 44.4 percent at the end of 2025.

Sources