Flemish budget deficit for 2023 smaller than expected

The Flemish budget deficit for 2023 was lower than expected, the latest monitoring report has revealed. While the Flemish government expected a deficit of 1.970 billion euros at the time of the budget adjustment, the actual deficit for 2023 was 1.507 billion euros.

This is partly due to some expenditures being lower than originally budgeted. For example, energy subsidies released for companies in danger of running into difficulties were not spent in full.

"Overall, it can be said that the budgets we signed to deal with the two biggest crises, in particular the energy crisis and the Ukraine crisis, were partly underutilised. So we clearly budgeted wisely," said Flemish minister of Finance and Budget Matthias Diependaele.

De Tijd newspaper nuances the results, writing that the billions of euros that Flanders invested in the Oosterweel Link - a project that should complete the R1 Antwerp Ring - are not included in the report. Revenues from federal grants and taxes will also increase in the coming years, giving the budget a significant boost.

Diependaele sees the new figures as proof that the Flemish budget is "carefully and thoughtfully prepared". The budget remains in the red, but Diependaele says the region is still on track to achieve a balanced budget by 2027.

^{#FlandersNewsService | Flemish Finance and Budget minister Matthias Diependaele © BELGA PHOTO DIRK WAEM}