Dutch deficit already at €11 billion this year; Third-worst in ten years

Dutch government spending in the first three quarters of this year exceeded revenues by 11 billion euros. This means the government deficit is 9 billion euros higher than in the same period in 2024, according to preliminary figures on public finances from Statistics Netherlands.

Government spending in the first three quarters of this year was 22 billion euros higher than in the same period in 2024. The increase was driven primarily by higher public sector wages, larger social benefits, and greater contributions to the European Union and aid for Ukraine.

The increase was driven primarily by higher public sector wages, larger social benefits, and greater contributions to the European Union and aid for Ukraine. Increased investments, as well as higher spending on defense and international commitments, add to the overall rise in government expenditures.

The government deficit, expressed as a percentage of gross domestic product (GDP), now stands at 1.6 percent on an annual basis. The Ministry of Finance’s 2026 Budget Memorandum anticipates a full-year deficit of 25 billion euros for 2025, equivalent to 1.8 percent of GDP. Excluding the record-breaking pandemic spending of 2020 and 2021, the national budget deficit has never been this severe.

Statistics Netherlands reports that, for the first time, annual government spending, calculated as the total of the last four quarters, has surpassed 500 billion euros. “Since the onset of the coronavirus crisis, government spending has increased by about 50 percent, rising from nearly 350 billion euros in 2019 to 521 billion euros this year,” the agency said.

Being an EU member, the Netherlands is required to adhere to budgetary limits: the deficit cannot surpass 3 percent of GDP, and public debt must stay below 60 percent of GDP.