How has the government managed to achieve this budget surplus? It seems so great. Is the Dutch government so good with the economy?

A budget will be used to create a projection of future incoming and outgoing cash flows.Many people call this income and cost, however, it is slightly more complex.
A surplus is achieved because the ratio between incoming and outgoing cash flows falls in favor of the incoming cash flows: More is being spent.

With this we already have an indication where we should look for: has more money been entered as a large, or less spent?
Looking at incoming cash flows, we need to look at two sides: planned incoming cash flows (mostly taxes) and occasional cash flows.The same applies to outgoing cash flows: How do planned outgoing cash flows relate to the budget, and are there occasional outgoing cash flows?

An article in het Parool offers some insight (cabinet can not lose money).
Taxes are positive, one-off windfall due to ING settlement, natural gas sales less than expected (because we produce less), less benefits through a well-running economy, higher EU payments and aid to Sint Maarten because of the hurricane.
What we also see is that a derivative contract (an interest rate swap) has been sold which has made a substantial one-time contribution.

However, there is a tension in the budget, which many people are unaware of.The budget should not allow exchanges between incoming and outgoing cash flows.
Either: A higher incoming cash flow may only be used to compensate for a lower incoming cash flow.You should not use this to increase a low outgoing cash flow.
As a result, in a budget surplus by higher than planned revenues, it is not immediately possible to use the money to stimulate education, for example, because that is part of the expenditure.

This is in itself a good starting point, because it works in the hand that the government does what the government should do: Create and implement long-term plans.
Most Dutch people think very differently: if we get a lot of extra money today we can just as well put the flowers outside.And we expect the government to be the same. If the government is too short in the future, can they immediately collect the deficit of your payment or savings account? Or would you rather not? Why do you expect the reverse of the government, that they spend immediately when they are too short?

The surplus is caused by the fact that a number of planned inbound and outbound cash flows have otherwise expired as planning (and that is allowed), and because there have been a number of occasional (one-off) inbound cash flows.

However, the question relevant to the Netherlands is not related to this surplus.This is a snapshot. The relevant question is: have the necessary investments been made that mute negative outliers in the future?
And the opinions are still divided.

Under Rutte everything is cut and then you keep money.Look also at what the price is of that surplus: disrupted education and overwrought teachers, major problems in care, a constantly ascending housing shortage, the army transformed into a scouting organization, stripped down police force, stripped down Judicial power, a jammed tax office. The list is much longer.

In a recession you have to stimulate as a government, because people dare not spend anything and the companies are reducing their costs.This has not been done, and that has extended the recession, but it has also saved money.

The reduction of the sovereign debt has been canonized.This is actually an idiot, because the huge pension funds in the Netherlands have so much extra tax revenues in the prospect that the whole of the debt can be redeemed with these additional revenues. If you put the debts off against the funds, there is actually no sovereign debt at all. The Netherlands is unique in this.

In The Netherlands it is always conservative.It is a matter of not too high economic growth. If the growth is higher than the size growth then more taxes will enter than originally considered this can lead to a surplus. The low interest rate also yields windfalls, and the state needs to pay less interest on the sovereign debt.

You get that for each other by spending less money than coming in.In a private household it is seen as a virtue. In A company It is a requirement: This is called profit, which is distributed by the shareholders.

In a non-profit-oriented-but-people-serving government, you could doubt whether the right problems are being addressed, or whether your right investments will be done in the future.

And discussing this a doubt, and coming up with alternatives: That’s what we call politics.Which also applies to a budgetdeficit .

The government has no money.

The government withdraws its money from the population.It is the duty of the Government to devote that to that population again. Usually this is governed by budgets that are presented with Prinsjesdag.

The government does not have the duty to 鈧?虄sparen .To deal sparingly with the money that she draws from society.

So what is going to happen to that surplus is not clear to me.

Dutchmen in general are quite konservative in their dealings with money, so this surprised me nothing.

I always take such news with a grain of salt.In Belgium, when the government comes out with such messages, there are often economists who explain on television that one interprets the figures consciously too positively. One explains what is more realistic and that usually comes out.

In Belgium It is every year that there is a ridiculous positive budget for Europe.Both Europe, economists and the national Bank are getting right when they argue that these figures can never be achieved.

Leave a Reply