What is all in the Budget Memorandum? An overview.
The cabinet wants to be “a stable factor in these complicated and unpredictable times”. That is why it sticks to previously promised tax cuts and investments in, for example, education, safety and sustainability. In addition, it continues to spend a lot of money to keep jobs and help employers adapt to the corona crisis.
More education money to accommodate student growth
In the coming year, more money will be made available for education, in part to accommodate the growing number of pupils and students. A structural 450 million euros will be released for this. An extra EUR 32 million is also being earmarked to combat the teacher shortage.
According to the ministry of education, culture and science, despite the corona crisis, education has “remained intact”. Earlier, Minister Arie Slob released 500 million euros to get rid of the educational disadvantages caused by corona. Schools can use this to furnish summer or autumn schools. In addition, “as many apprenticeships and internships as possible are retained”.
It is the last education budget of this cabinet. This cabinet period has been structurally invested more than 2 billion euros more than in the previous one, the ministry writes.
Foreign Affairs builds on lessons learned from the corona crisis
The State Department will build on the lessons learned during the corona crisis next year. For example, the preparation for crises for consular services is being further refined.
The corona crisis stranded tens of thousands of Dutch people abroad. The ministry will place more emphasis on travel advice and information campaigns. As a result, travelers must go abroad more consciously.
Cabinet is pulling purse to make healthcare more attractive
Working in healthcare must become more attractive, the cabinet believes. In order to reduce workload and administrative red tape and to increase opportunities for development and growth, the cabinet is earmarking 20 million euros for next year. That amount will increase to 130 million euros per year until 2023.
To combat the corona crisis, the Ministry of Health is allocating a total of 6.7 billion euros this year and next year. € 650 million has been earmarked for increasing the test capacity and € 305 million for the capacity in intensive care units.
2.16 billion has been reserved for the bonus that healthcare workers will receive this year (1000 euros) and next year (500 euros). The conditions for healthcare workers are high on the agenda in The Hague due to the corona crisis. The opposition has been pushing for a salary increase for healthcare for months, but the cabinet does not want that.
Defense is emphatically committed to personnel policy
Defense has 11.5 billion euros to spend next year. During this cabinet term, the ministry received a structural 1.7 billion euros, incidentally the same amount was added. Yet it has been struggling with a shortage of people for years. Next year, the ministry wants to expressly profile itself as a modern employer in the hope of attracting new staff.
The ministry is looking for new ways to find staff. For example, attempts are being made to recruit more regionally. The experiences are positive, according to the ministry. It is also being examined whether reservists and hiring external parties can provide extra capacity. The ministry hopes to improve veterans ‘care next year by merging veterans’ organizations.
For the first time, the Ministry of Defense is introducing a material budget fund. This includes 4.6 billion for next year and about 66 billion for the next fifteen years. The fund must provide a better overview of the costs and benefits of investments and maintenance. The fund must also make the budget less vulnerable to sudden changes and setbacks.
In 2024, NATO countries must spend 2 percent of their gross domestic product (GDP – the total size of the economy) on Defense. Next year, the Netherlands will be 1.48 percent, a considerable increase. That is because Defense is getting more money but the economy is shrinking due to the corona crisis. Despite the increase, the Netherlands remains one of the NATO countries with the lowest percentage.
Nitrogen continues to dominate Schouten’s agricultural budget
Almost a year and a half later, the nitrogen decision of the Council of State still hangs above the government’s agricultural plans. In the coming months, the cabinet must continue to work on reducing nitrogen emissions, so that environmental permits can be issued again for the construction of homes.
Agriculture Minister Carola Schouten recently announced a nitrogen approach, her vision on circular agriculture and a new fertilizer policy. The “National Protein Strategy” is still underway. The minister would have preferred to have a complete plan ready in her latest budget so that the farmer can continue to farm and nature is restored. But many problems still have to be solved before full construction can be started again and the farmers really know where they stand.
A previously presented plan to 2030 should ensure that nitrogen emissions from various sectors are reduced. Cattle farmers can, under certain conditions, stop farming if they wish in exchange for a bag of money. A plan to reduce emissions from dairy cows’ manure by adapting the feed has been abandoned.
Undermining will remain a spearhead for Justice in 2021
Fighting undermining crime will remain a priority for the Ministry of Justice and Security next year. Next year, 141 million euros was earmarked for this, which will increase to 150 million euros in the following years.
The money is intended to “fight the criminal drug industry and make society more resilient to the poison of criminal money, threats, intimidation and liquidations,” the ministry said. In addition, the money is intended to strengthen witness protection and the Royal and Diplomatic Security Service, which protects politicians and members of the royal family, among others. These services have had more and more work on their plate in recent years, which has increased the workload considerably.
At the start of the corona crisis, most courts were closed. In June this had resulted in a backlog of 17,000 cases. To catch up next year, 40 million euros will be earmarked. The backlog should be cleared by the end of next year, the ministry thinks.
Rent down for 260,000 social tenants with too low income
A large group of people in social rental housing who have too high a rent in relation to their income will be entitled to a lower rent next year. Housing corporations will be obliged to implement the one-off rent reduction, according to plans by Minister Kajsa Ollongren (Internal Affairs) for next year. There is a bill to this effect.
These so-called “expensive crooked residents” are estimated to be 260,000 tenants. If the plan goes ahead, they will receive a rent reduction of an average of 40 euros per month. Ollongren: “This rent reduction is really aimed at those people who have too high housing costs and are therefore vulnerable to payment risks and debts. I want to give those people more financial scope, so that there is also money left at the end of the month for other things ”.
In total, the rent reduction involves 160 million euros, her department reports. The housing corporations have to pay 200 million euros less in landlord levy, an amount that the housing corporations must jointly pay to the State each year. With the rest, the corporations can maintain their investments to build houses and make them more sustainable.
Ministry of infrastructure highlights investments
The Ministry of Infrastructure and Water Management is highlighting investments in roads, rivers and rail. In this way, the ministry will also come to the aid of the construction sector in next year’s budget “in these difficult economic times”.
“It is almost as busy on the roads as it was before corona. So we ensure that the infrastructure is in better shape when the economy picks up again. By accelerating maintenance where possible, we want to avoid delays at bridges and locks as much as possible, ”said Minister Cora van Nieuwenhuizen.
It is making half a billion euros available for maintenance more quickly. Among other things, money will go to major maintenance of the N18 and A50 in the east of the Netherlands. The Nederrijn-Lek, Bovenrijn-Waal and the Twente canals will also be tackled earlier.
A further 100 million will be added next year to improve road safety. This can improve places where many accidents occur.
State Secretary Stientje van Veldhoven will be spending 1.4 billion more quickly on rail in the coming years. More stations are being made wheelchair-friendly. She will also invest 40 million in an economy without waste. This will include the development of a circular system of reusable cups for festivals.
