Flemish government to save an extra 330m euros this year
The Flemish government is going to save an additional 330 million euros this year and will - following the federal government - delay the indexation of wages and benefits. According to Flemish budget minister Ben Weyts, these budgetary interventions are necessary to keep the Flemish budget on track towards the envisaged balance in 2027.
Just like last year, the Flemish budget would plunge about three billion euros into the red this year too. At least that was the expectation when the budget was drawn up. But new figures show that the deficit has increased by 680 million euros since the previous budget preparation and threatens to reach about four billion euros. The main reason is that economic growth is lower than predicted.
Budget minister Weyts therefore wants to intervene immediately and not wait until the next budget preparation in September. Thus, the Diependaele government will save an additional 330 million.
Where and how exactly cuts will be made must be clarified in the coming weeks. “Normally no real savings are made during a budget adjustment, but this time we have already done so, because there is still a lot of work to do to put our accounts in order,” said minister Weyts.
In addition, the Flemish government will delay the indexation of wages and benefits by one month. Thus, civil servants' salaries will only be indexed in the third month after exceeding the central index, instead of in the second month. According to the Weyts cabinet, this has a budgetary impact of 40 million euros for the salaries of Flemish civil servants this year. The delayed indexation at the Flemish level is said to be an automatic consequence of the federal decision to delay the indexation of wages and benefits by one month.
The government has also already made new and stricter arrangements for the September budget preparation. For instance, ministers will have to better justify their spending and indicate where they will make savings.
Criticism Groen
Opposition party Groen is critical of the announced savings. The party's Flemish parliamentary group leader Mieke Schauvliege finds it “incredible” that the Flemish government recently provided 500 million euros of “extra spending” for defence while that is not a Flemish competence and now wants to save an additional 330 million euros on its core tasks such as “water policy, care and education”.
#FlandersNewsService | Flemish finance and budget minister Ben Weyts © BELGA PHOTO HATIM KAGHAT
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