In the wake of Belgium's budget presented yesterday, the Brussels Government has announced close to €7 billion spending in the regional 2023 budget. This aims to support companies and institutions in the continuing energy crisis and balance regional reserves by 2024.
Unveiled by Brussels Minister-President Rudi Vervoort (PS) and Finance and Budget Minister Sven Gatz (Open VLD) at a press conference on Wednesday, the regional government has settled on a €400 million deficit for their budget in 2023. The agreement followed tumultuous talks last week.
Gatz congratulated his government, stating that "we have managed to keep expenditure under control in such a way that it is possible to achieve a new balance by the end of our term in office." This is, in part, thanks to a €200 million rise in the region's allocation from the Federal Government.
Taxes on personal income, inheritance and registration will also contribute to regional funds. Brussels hopes to save a further €150 million to facilitate expenditure.
Responding to the energy crisis
The largest chunk of government spending is €200 million that the Brussels government will put towards "protection" against rising energy costs for residents, companies and non-profits.
Efforts will focus on supporting businesses and the non-profit sector, given that the Federal Government budget aims primarily at helping households.
As a result, €120 million in direct aid will be granted to companies, as well as new measures to accelerate their energy transition. A further €10 million will be used each year to renovate social housing, which includes the mass rollout of double glazing. Over €26 million has been earmarked for additional energy costs in social housing.
Welfare, public transport and rent
The Brussels government will also support Brussels households most in need by providing an extra €20 million to the region's centre for social support (CPAS). This will be distributed in welfare payments. This comes in response to increasing requests for assistance in the face of rising energy expenses.
To that end, an additional €23 million will be given to municipalities that are facing their own rising energy bills, as well as salary indexations.
Fares on Brussels public transport will stay the same, save for the annual subscription for seniors, which will be lowered to €12.
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As announced over the weekend, limits will be imposed to prevent the indexation of rents. The move also aims to improve the energy efficiency of rental properties.
Furthermore, an 8% reduction will be applied to ministerial allowances from January onwards, as will be the case for ministers of Belgium's other governments.
Most importantly, the grievances of employment minister Bernard Clerfayt (DéFI) about service vouchers have been resolved. The disagreement threatened to derail budgetary talks but a further €13 million has now been set aside, with assurances of additional financing in the future if necessary.
