Finance Minister Eelco Heinen officially presented the Accountability Documents to the House of Representatives today - Accountability Day. The minister emphasized the current geopolitical situation. “We present this annual report again against the backdrop of significant international tensions. The ongoing war in Ukraine and the import tariffs announced by the United States lead to much uncertainty. This can have consequences for our open economy and thus also for the budget. We must not count ourselves rich. Therefore, it is important to handle public finances cautiously and to maintain the restoration of budgetary discipline.”

The economy performed well in 2024. The economic growth for 2024 was 1.0%; slightly more positive than the Central Planning Bureau had previously calculated (0.6% growth). Unemployment remained historically low (3.7%). Inflation was higher (3.3%) than the average in the rest of the eurozone (2.4%) and wages rose by an average of 6.7% in 2024. The increase in purchasing power was 2.9%. This was also more than previously anticipated.

The public finances for the past year turned out more positively than expected at the start of the budget year, for example, due to expenditures being shifted to later years. The budget deficit (EMU balance) for 2024 was -0.9% of GDP (a deficit of € 10.1 billion). In the 2024 Budget Memorandum, the deficit was still estimated at -2.9% of GDP. The national debt (EMU debt) stood at a historically low level of 43.3% of GDP (€ 491.6 billion) at the end of 2024. However, it is expected that the debt will rise in the coming years. The Netherlands remains well within the European reference values for the deficit (3% GDP) and the debt (60% GDP) of the Stability and Growth Pact (SGP).

The tax and premium revenues in 2024 broadly matched expectations. On the expenditure side of the National Budget, a total of € 17 billion in expenditures was deferred (cash sliding) or not fully spent (underspending) during the year. This is mainly due to unrealistic ambitions and the persistent tightness in the labor market. The cabinet continues to focus on more realism in ambitions and plans during the budgeting process. The cash sliding in 2024 is part of that approach.

In 2024, the legitimacy of public finances overall further improved. The legitimacy percentage for expenditures (99.67%) and revenues (99.94%) is well within the tolerance limit of 1% set by the Court of Audit. Only for obligations (98.94%) is that norm, despite a small improvement, slightly exceeded. In addition, the Court of Audit reports a total of 40 irregularities, of which 3 are serious.

The Financial Annual Report of the Kingdom, the departmental annual reports, and all other Accountability Documents can be found at www.rijksfinancien.nl