Technical Briefing Council of State on the Budget Memorandum

Thom de Graaf, Vice-President of the Council of State, gave a brief introduction about the advice. Stability and long-term strategy ensure good public finances. Important points include shifting from consumptive expenditures to investments, preparing choices for a new cabinet, and attention to the 2026 Tax Plan.

Committee members asked questions about, among other things, the multi-year planning, the competitiveness of the Netherlands, the shift towards investments, and how other countries view the Dutch multi-year budget. They also inquired about the sustainability and effectiveness of funds and requested an overview of state guarantees and participations. For some taxes, such as car tax, there is little continuity due to many changes, which is a concern. Finally, senators were curious about how long-term choices can be made despite cabinets governing for at most four years.

Abroad, the Netherlands is praised for its multi-year budgets. Unfortunately, the Netherlands itself exceeds the maximum expenditure path with the long-term budget, which is viewed somewhat critically, said the Council. Good public finances start with analysis, thoroughly understanding matters before political choices are made. Financing through funds such as the Delta Fund ensures long-term goals are met and the government does not have to change direction annually. If the government wants to promote investments via a fund, these must be actual capital investments and not disguised regular expenditures. An overview of state guarantees and participations falls more under the Court of Audit, which has written a separate letter on this.