The Monitoring Committee now estimates that primary spending must be reduced by €3.6 billion next year to comply with EU budget rules.
This update, provided by the Belgian administration at the request of federal formator Bart De Wever (N-VA), sets a target for federal negotiators working to form a government.
In June, Belgium was one of seven Member States called out by EU regulators over excessive spending and public debt. The State now has until the end of December to submit a multi-annual budget plan to the European Commission, setting out how it plans to improve its public finances over the next four to seven years.
The Monitoring Committee found that Belgium's budget deficit has worsened by approximately €364 million, reaching €18 billion this year, L'Echo reports. Next year, the deficit is expected to hit €20.5 billion.
The focus is on "net primary expenses," which include all public spending except interest charges, unavoidable unemployment benefits, and fully EU-funded expenses. The Monitoring Committee projects these expenses will reach €190.6 billion in 2025, reflecting an annual growth of 4.79%, which is deemed excessive.
According to the Belgian administration, in a seven-year scenario, the Commission would ask Belgium to limit its spending growth to 2.89%. The difference of 1.9% equates to €3.6 billion in annual spending cuts to be made from next year.
