In the coalition agreement, it states that starting from 2026, the budget must be structurally balanced. This means that structural tasks must be covered by structural income. When establishing the Budget 2025, this balance was not achieved. Since the structural funds of the province are not finite, it was decided to limit the adjustment of the budget in the Spring Note this year.

Additional funds released

In the Spring Note, additional funds are allocated for wildlife management and wildlife damage, a previously reserved amount for the South Holland Rural Area Program (ZHPLG) is released, and more funds that we received from the government for public transport are also released. This is used to prevent fare increases with carriers and to maintain and improve the supply. Many subsidies have also been applied for in 2024. Some have already been granted, but not all have been paid out yet. To continue stimulating housing construction, we have chosen to keep the budget available for this.

Structurally more income

Furthermore, the Spring Note shows that we are receiving structurally more income than we could predict when establishing the Budget 2025. The motor vehicle tax yields more due to the increase in the number of vehicles in South Holland and the vehicles becoming heavier on average, thus being taxed at a higher rate. This is particularly the case for electric cars. The distribution from the Provincial Fund is also higher than initially budgeted. We also see that some investment projects start later and are also completed later. As a result, capital costs such as depreciation are deferred to the future. Thus, the expenditures are made later than originally planned when drafting the Budget 2025. These developments now have a positive effect on the budget balance.

Reconsideration task remains

In the Framework Note, these developments are elaborated for the longer term. It is clear that the income is structurally higher than previously budgeted, but this does not negate the fact that there is still a reconsideration task, as more labor capacity is needed than currently budgeted to realize all the ambitions of the college. Additionally, given all the economic and social developments, it is necessary for the provincial finances to be resilient for potential setbacks in the long term.

Dynamic playing field

‘Budgeting always takes place in a dynamic playing field, and therefore it is good to only spend when you know what you have on a structural level. We are getting better at this, but it still requires carefulness, while we must consider that we are also dependent on third parties, concludes Van Leeuwen.