Amsterdam scores 9.5 in National Municipal Finances review, beats most large cities

Financially, Amsterdam is doing very well. In BDO’s annual review comparing all Dutch municipalities, the city scored 9.5 out of 10. The rating is derived from municipal budget documents, including year-end accounts and budget plans

Early in the current municipal term, Amsterdam struggled with shrinking allocations from the municipal fund, referred to as the “ravine,” creating a 140‑million‑euro shortfall. According to Finance Alderman Hester van Buren, the city has steadily eliminated the deficit since the 2023 budget year, achieving a balanced budget despite other major reductions from the fund. The city’s general reserve has also recovered to pre-pandemic levels.

“I’m proud that Amsterdam’s finances are now strong. At the beginning of this term, the city faced a very different situation because of the COVID‑19 aftermath and potential budget shortfalls from the national government. I consider it a success for the entire council that, after the municipal elections, a new council can start with a solid financial foundation to carry out what’s needed for Amsterdam,” Van Buren said.

Van Buren emphasizes that keeping Amsterdam’s finances healthy will require making careful decisions. The amount of funding from the new national government for areas like youth care is still uncertain, and significant investments are planned. To manage this, the city has introduced spending limits and is reforming its municipal administration.

Nationwide, municipalities averaged a 6.8 grade, down from 7.4 in 2022, due to looming deficits: €667 million in 2025, €1.4 billion in 2026, and similar shortfalls through 2028, despite 76 expecting surpluses totaling €1.3 billion.

Amsterdam outperformed most large cities; Rotterdam scored 9.1, Best hit 10.0 for solvency, and Valkenburg aan de Geul led small municipalities with a 10.0