Brussels Parliament Approves Provisional Budget Amidst Liquidity Concerns & Criticism
The Brussels Parliament has approved provisional twelfths – a temporary budget measure – despite important criticism regarding potential circumvention of parliamentary oversight and looming financial challenges. The vote passed wiht five votes in favor (PS, Ecolo, and Groen), two against (N-VA and team Fouad Ahidar), and eight abstentions (MR, PTB, and Les engagés), setting the stage for a potential plenary vote next week.
A key point of contention centers on the government’s ability to reallocate funds independently of parliamentary approval under the provisional twelfths system. Critics, particularly from MR and N-VA, argue this “sidelines” parliament and grants the government excessive financial control, especially given the current political climate. While Minister of Finance Dirk De Smedt maintains these budget shifts will only occur “if there is really no othre option” and parliament retains the right to interpellate the government afterward, concerns remain about diminished scrutiny.
The approved measure comes as the Brussels government faces a potential liquidity risk beginning in May, triggered by the need to pay civil servant holiday pay and municipal allocations, coinciding with a delayed influx of tax revenue.De Smedt outlined a clear priority list should funds become critically low: debt repayment and interest, followed by salaries and operating resources (as constitutionally mandated), then municipalities and community committees, and finally subsidies, project financing, and investments.
Further scrutiny was directed at the lack of revenue estimates within the provisional budget. De Smedt acknowledged this omission but stated he isn’t legally required to provide them, though he indicated a willingness to share projections in the future. He revealed anticipated increases in property tax revenue (12% compared to 2024) and federal personal tax revenue (9% compared to 2024).
Efforts to control spending through a moratorium on new staff appointments have yielded minimal results, with a reduction of only 121 civil servants (a 0.5% decrease) out of a total of 22,000. de Smedt conceded the need for additional measures to manage personnel costs and promised to present proposals.
Green party MP Stijn bex expressed concern over the difficult choices the government will face, hoping they will prioritize the “human aspect” during budget arbitrations. N-VA’s Gilles Verstraeten highlighted the stricter rules typically associated with provisional twelfths budgets compared to regular budgets. The STIB (Brussels public transport company) is also facing potential cash flow issues, underscoring the widespread nature of the liquidity shortage.
