Budget deficit rose last year to 27.75 billion euros
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The total Belgian budget deficit rose last year to 27.75 billion euros or 4.5 percent of the gross domestic product (GDP), of 24.42 billion or 4.1 percent of GDP in 2023. This is evident on Thursday from statistics from the Institute for National Accounts (INR).
Source: Belga
Today at 3:57 PM
The increase is due to an increase in expenditure. « They continue to show a structurally rising trend due to the effect of aging on pensions and health care, » it says in an explanation. « The year 2024 was also characterized by considerable capital expenditures, under the impetus of increased investments at federal level, in particular in the Ministry of Defense. »
For example, primary expenses increased by 14.9 billion to 320.7 billion euros or 52.2 percent of GDP. In addition, the interest charges, which rise from 2 to 2.3 percent, show an GDP for the second year in a row an increase after years of decreases.
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In the meantime, the receipts increased by 13.5 billion euros to 306.8 billion euros (50 percent of GDP). « That increase is mainly due to taxes on companies that increased by 0.5 percent of GDP, » it sounds.
The communities and regions in particular contribute to the rising budget deficit. Their financing surplus rises from 6.98 to 9.86 billion euros, as a result of the relapse of the transfers received from the federal government, which sees the deficit with 2.28 billion reduced to 17.15 billion euros. The balance of social security and the local authorities also deteriorated.
