Global tensions are rising. Therefore, the cabinet focuses on stability and security. Support for Ukraine will continue, and more money will go to Defense. In this time of high inflation, the cabinet has chosen to cancel the VAT increase on sports, culture, and media, and to lower the tax on energy bills. More money will also be allocated to municipalities, increasing housing benefits, and correcting errors regarding WIA benefits. In all of this, the cabinet remains steadfast in adhering to budget rules and the financial agreements from the framework agreement. All shortfalls and new investments are covered by budgetary provisions, and the budget deficit will remain within the 3% limit in the coming years.

The Spring Memorandum, which Minister Heinen (Finance) sent to the House of Representatives today, includes an update of the budget for this year and a preview of the plans for 2026 and the years beyond.

Minister Heinen: "There is a solid and good package for the Netherlands. We cover shortfalls while also making a number of targeted investments. We do not pass on bills. This prevents taxes from rising in the future. I stand for healthy and solid public finances. This has helped us enormously during previous shocks, such as the corona and energy crises. Even now, in a time when many things are happening internationally, financial buffers are of great importance.”

The cabinet adheres to the established financial frameworks and trend-based budget policy. At the same time, investments must be made to address the challenges facing the Netherlands. In this Spring Memorandum, the cabinet covers shortfalls and includes investments and adjustments. Shortfalls in areas such as asylum, EU contributions, and disability (WIA) have been processed. Additionally, the cabinet is investing in defense (1.2 billion structurally) and resilience. It is also reversing the previous cuts to childcare. Furthermore, housing benefits will be increased, and municipalities will receive additional funds in the coming years. The Niedersachsen line and several other priority infrastructure projects in Northern Netherlands will be realized, covered by the reservation for the Lely line.

To prevent deficits from increasing further, choices must be made. The cabinet opts for interventions in social security (WW and the child-related budget), in the costs of medicines, and making youth care manageable. On top of that, a nationwide cap will be placed on the growth of government spending by partially withholding the price adjustment.

The cabinet has decided to lower the energy tax and will allocate 200 million euros per year for this from 2026 to 2028. The increase in VAT on culture, media, and sports will be definitively canceled. This will be funded by limiting the tax brackets and tax credits within income tax to compensate for price developments.

Based on the Spring Memorandum, the budget deficit (EMU balance) for 2025 is estimated at -2.6% of GDP, and for 2026, it is a deficit of -3%. The national debt (EMU debt) is expected to be 45.2% of GDP this year and 47.8% in 2026, well below the European norm of 60% of GDP. Thus, the Spring Memorandum is in line with the financial agreements established at the beginning of this cabinet term.