The Hague – The Netherlands‘ budget projections for 2026 and beyond contain unrealistic cuts and postponed investments, possibly burdening future governments, according to a critical assessment released by the Court of Audit following Prince’s Day. The Court of audit has sent letters to each ministry outlining these concerns.
Key issues highlighted include overly optimistic savings projections on asylum costs. While the former asylum minister, Faber, anticipated a decrease in spending linked to fewer asylum seekers, current submission numbers do not support this assumption. The budget currently estimates €4 billion for asylum reception in 2026,dropping to just €1 billion in 2027.
The Court of Audit also flagged calculated cutbacks on EU payments.The current cabinet aimed for a €1.6 billion discount on contributions to the EU, a negotiation that has yet to yield results, but the anticipated savings are already factored into the budget. Conversely, the Netherlands expects to receive €2.9 billion from the European repair and resilience fund for sustainability and digitization projects, requiring detailed accountability for previously received funds – an area where the Court of Audit previously warned the Netherlands is “not in order” this spring.
Furthermore,the outgoing cabinet’s practice of postponing scheduled investments,referred to as “cash,” creates a more favorable short-term budget outlook but shifts costs onto the next administration.
Regarding defense spending, the budget lacks provisions for increased expenditures committed to under a NATO agreement, potentially totaling €19 billion annually in the long term. The allocation of funds for this increase remains a contentious point among political parties, with the CDA proposing a tax increase (“liberty contribution”), GroenLinks-PvdA advocating for increased defense spending without cuts to social security, and the VVD favoring budget cuts over tax hikes.
The Court of Audit’s assessment underscores a policy-light budget presented by the outgoing cabinet, deferring major decisions to the newly elected Lower House.
