More paid taxes mean €43 billion windfall for Dutch government
The government announced a financial windfall of 4.3 billion euros on Friday. According to Finance Minister Jeroen Dijsselbloem, the money came from Dutch citizens paying more corporation tax, income tax and VAT than expected due to the improving economy. And the sale of 65 million ABN Amro shares, which brought in 1.3 billion euros, NOS reports.
This windfall will be used to further relieve the state debt, which means the budget deficit is decreasing faster than expected. On Budget Day it was expected that the budget deficit would be at 1.1 percent this year. NOw its decreasing to 04. percent. "That means we have some buffers if the economic weather takes a turn for the worse", Dijsselbloem said.
A lower than expected number of asylum seekers also meant that money is saved on asylum shelters. This means that nearly 500 million euros can now be used for development cooperation instead of asylum reception.
The government decided to use 330 million euros for a salary increase for teachers, soldiers, police officers and other civil servents. Next year their retirement premium is inreasing. "We therefore believe it is reasonable that they also get a raise", Dijsselbloem said, acording to the broadcaster.
"This is jys great, we've had setbacks for a long time. Now is the time to let people share in the windfall." Deputy Prime Minister Lodewijk Asscher said, according to NOS.