The Flemish Government’s projected budget deficit for 2024 will be a billion euros higher than expected, according to figures compiled by Budget Minister Matthias Diependaele on Monday.
According to Diependaele, the increase is due to the weaker-than-expected economic growth and lower revenues from registration fees.
If all current policy remains unchanged, the 2024 deficit would be €2 billion. Adding the costs of the mega-project to complete the Antwerp ring road (Oosterweel link) as well as the stimulus measures (traditionally kept off-balance sheet), the deficit would rise to €3 billion.
The N-VA minister warned last week that expectations of major investment in crèches and childcare should not be too high. There would be a small margin, just as there is for school transport, but this would have to be partially offset, Diependaele told reporters on Monday.
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The chances of one of the three parties in government (N-VA, CD&V, Open VLD) proposing a tax hike are slim in view of the 2024 elections, so savings will have to be made on expenditure first and foremost, it was suggested.
This week, the ministerial cabinets are looking at the 2024 budget, with the traditional “September statement” by the Minister-President, Jan Jambon (N-VA), scheduled for 25 September.
Last year, Jambon suffered the embarrassment of having to postpone this exercise.
