In 2016 Dutch government runs first surplus since financial crisis

In 2016, the Dutch government ran a budget surplus of approximately 3 billion euros or 0.4%of GDP, its first surplus since the 2008 financial downtime, as Statistics Netherlands revealed on Friday.

The news might play a role in negotiations as Prime Minister Mark Rutte tries to organize a new centre-right coalition after March 15 elections, which saw support for current junior partner Labor reduced.

Potential partners in the new coalition are backing spending increases on healthcare as well as environment.

The CBS told that net debt edged down to 62.3% of GDP, following the surplus, which is close to the limit of 60% specified by eurozone rules.

The agency told that the shocking surplus came from an ascend in revenues after several years of accelerating surge, and not any spending restrictions.

Growth actually shows up in corporate taxes with a delay. It’s because losses from previous years are deducted from revenues, as the agency informed in a review of 2016.

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23.07.2021 10:05 Friday Trades: EUR/USD, USD/JPY, and Gold

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