Government spent €17.6 billion on Covid support in 2020
In total, companies received 17.6 billion euros in Covid relief, Statistics Netherlands (CBS) reports. Roughly 15 billion euros of the Covid financial support went to continue paying payroll wages as part of the NOW scheme. The remaining 2.6 billion euros went towards the compensation of fixed costs in the TOGS/TVL scheme.
The trade sector, including wholesalers and retailers, received the largest amount in wage compensation followed by rental services, health and social care and other business services. The trade sector received three billion euros in governmental support for wage and fixed costs, of which 2.6 billion went to paying employees’ wages. Within the trade sector, the majority of Covid relief went to wholesale markets at 1.5 billion euros, followed by the retail trade at one billion euros and car trade and repair services at half a billion euros.
"In the hotel and restaurants industry, fewer wage costs were reimbursed, but by far the highest amount was paid from the fixed costs support measures: 791 million euros. Including wage costs, the catering companies received 2.8 billion euros, 16 percent of the total subsidies for wage costs and fixed costs," the CBS wrote.
The largest amount of compensation for fixed costs went to the hospitality sector, one of the areas most heavily impacted by the coronavirus crisis.
Overall, government spending went up by 13 percent in 2020, five percent of which is attributed to Covid support. The NOW and TOGS/TVL scheme account for nearly two-fifths of the five percent increase. The increase is also attributed to other Covid relief funds and increases in social benefits and rewards for employees.
Both the NOW and the TOGS/TVL scheme are granted on the basis of expected loss. The final amount of Covid support will be determined in retrospect and could be higher or lower.
