Budget Day today on background of quarreling, divided coalition

King Willem-Alexander will, as per tradition, deliver the Budget Day speech from the throne today, in which he announces the government’s vision and plans for the coming year. The speech is often an expression of unity within the government. But more than in other years, quarrels and divisions in the PVV, VVD, NSC, and BBB coalition overshadow the third Tuesday of September.

On Monday, the NSC clashed with the PVV and VVD after interim parliamentary party leader Nicolien van Vroonhoven announced that her support for the asylum crisis law was conditional on positive advice from the Council of State. It was the latest of the many conflicts that the coalition has endured in its short existence.

The extraparliamentary and experimental Schoof Cabinet is still finding its feet somewhat, as key players like Pieter Omtzigt (NSC) and Geert Wilders (PVV) also acknowledged. The budget that the Cabinet will present on Tuesday was drawn up with great difficulty. Omtzigt allegedly wanted to interfere strongly instead of keeping his distance. It further exacerbated the already tense relations. Omtzigt is now sick at home.

The speech from the throne, which the Cabinet writes, may still radiate some unity. Omtzigt previously asked Prime Minister Dick Schoof to “give an idea of the eye for humanity from which the government will act.” At the same time, all four coalition parties still clearly have their own political color, something that the party leaders also embrace. The question is whether that can be translated uniformly into a speech from the throne.

Much of what the Cabinet will announce in the budget has already leaked to the press. Purchasing power will increase by 0.7 percent, lower than the Bureau for Economic Policy Analysis (CPB) previously calculated. This is because the Cabinet will postpone certain tax relief measures since the economy is doing “surprisingly well,” according to CPB boss Pieter Hasekamp.

The “expat scheme,” which means that expats don’t pay tax on 30 percent of their income, will only take a minor cut. It was supposed to drop to 10 percent in several steps but will remain at 27 percent next year.

There will also be an extra bracket in the income tax so that everyone pays less tax on the first part of their income.

After Budget Day, the coalition will face a tough debate. Not only will the left-wing opposition attack the course that they consider too right-wing, but it is also questionable whether the four coalition parties will leave each other unscathed. The debate on the government statement, just before the summer, degenerated into chaos when coalition partners attacked each other.