The new government plans will reduce spending capacity.
Most people in the Netherlands will have slightly less money to spend under the new government’s plans, while low-income households will be hit the hardest, according to calculations by the CPB.
The new administration, a minority coalition of the VVD, D66 and CDA, is set to take office next week. In its analysis, the CPB said average spending power is expected to fall by 0.4 percent as a result of the coalition’s policy package.
Low-income households are expected to suffer the most from the decision to raise the healthcare own risk contribution to €460. They will also be affected by the merger of two child-related benefits. At the same time, teachers and members of the armed forces are expected to see improvements in their spending power in the coming years.
The CPB noted that the government’s plans make some progress on climate change and nitrogen-based pollution, but not enough to meet national targets. Measures to tackle the housing shortage are also expected to have only a limited effect.
Spending on defence is set to rise sharply, with the Netherlands expected to meet the new NATO target of 5 percent of GDP for defence and related infrastructure. More funding is also being directed toward education. However, the CPB warned that because the coalition lacks a majority in both houses of parliament, the plans could still change before they are approved.