To keep the budget on track, the Flemish government will save 430 million euros annually by 2027. Anyone who installs solar panels will no longer receive a premium from next year. Municipalities lose an extra. Money is being skimmed from family care. And the kilometer charge for trucks will be expanded.
Jeroen Van HorenbeekSeptember 25, 2023, 6:00 PM
More money for childcare, the lowest wages, education, healthcare, the fight against global warming,… Flemish Prime Minister Jan Jambon (N-VA) did everything he could on Monday to reduce investments in ‘his’ budget to highlight. But, where does all that money come from? In the famous words of N-VA chairman Bart De Wever: show me the money!
Jambon assures that for every extra euro that Flanders spends, there is a euro in savings. How? The service checks will not be affected. For N-VA and Open Vld, these are too important for families with working parents. However, the target group discount for companies that employ older people and low-skilled young people will be cut. “That is a measure that has little effect today, given the tightness on the labor market,” Jambon believes. This involves a saving of 118 million euros by 2027.
Profitable
Anyone who installs solar panels on their roof will no longer receive a premium from January 1, 2024. Normally, the premium would be halved on that date. But solar panels are already a profitable investment today, says Energy Minister Zuhal Demir (N-VA). Government support is therefore no longer necessary. Demir relies on a calculation from the Flemish Energy and Climate Agency for this. The savings apply to both families and companies. Families miss out on an amount of up to 375 euros. This intervention will yield 40 million euros.
The growth path for family care is limited. In recent years it has become apparent that Flanders structurally sets aside too much money to support the elderly to continue living in their own home for longer. This concerns, for example, help with shopping. Flemish Budget Minister Matthias Diependaele (N-VA) emphasizes that this is not an anti-social saving. “It remains a growth path, but we see that this is increasing less quickly than expected. So that money is simply not needed there.” The operation will generate 42 million euros by 2027.
There is also grabbing in the municipal treasury. The Flemish cities and municipalities will receive less money from 2026 – at the start of a new local budget cycle. Local authorities have been receiving an amount of 83 million euros from Flanders for years. This is a historical legacy of the IPO of power grid operator Elia. That extra will soon disappear.
Even more striking: from 2024, the kilometer charge for trucks will be expanded by 1,000 kilometers. A measure to prevent them from bypassing the toll (with the help of traffic apps). Tolls will be charged on half of the Flemish regional roads. According to the government, this also affects many foreign transporters. The tax will generate 111 million euros by 2027.
Shortage
A balanced budget by 2027 remains the government’s goal. Flemish Prime Minister Jambon has previously said that it is “a point of honor” for him to leave a budget in order for his successors. This should allow them to dig deep into their pockets during any crises. It is also important for N-VA to make a difference in Flanders with the blood-red federal budget.
In concrete terms, the Flemish government is aiming for a budget deficit of 2.6 billion euros in 2024. This should shrink to 2.1 billion euros in 2025 and 735 million euros in 2026. “Without new policy, we will have a surplus of just under half a billion in 2028. This is the best proof that our budget is very healthy at its core,” says Diependaele. “We have worked hard on this in recent years, despite successive crises.”
Image Eric de Mildt
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2023-09-25 16:00:34
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