Finance

CPB: coalition agreement leads to more growth, future generations pay the price

This is apparent from the calculation that the CPB has made of the coalition agreement.

The new cabinet will take a big hit in the coming years. Tens of billions go to the nitrogen and climate problem, for example. That extra money leads to more economic growth: 0.5 percent more per year than if the policy were not changed.

The economists think that not all planned expenditures by the government will go ahead. Due to the tight labor market, some of the money for infrastructure and defense will remain on the shelf.

Employment will also improve in the coming years, especially in government and education, according to the accountants at the CPB. Unemployment will fall by 0.8 percentage point compared to the previous estimate.

Purchasing power remains the same

Purchasing power remains at zero. That is an improvement, however, because without measures from this cabinet, purchasing power would actually decrease, according to the economists of the planning office.

All that has a price. Future generations will be presented with a higher bill. The national debt will amount to about 92 percent of the economy in 2060, a lot higher than with unchanged policy. Then the national debt would have been 28 percent. The budget deficit will rise to 2.7 percent in 2025.

setback

It is probably a setback for the new cabinet. The accountants of the CPB state that the new coalition now incorrectly assumes a number of temporary expenditures, while these are probably structural in nature.

This extra debt is offset by an improvement in education, the climate and the environment. Something that future generations will benefit from.

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