The Lawspeaker
04-01-2010, 06:21 PM
How to raise €35bn: make cuts, put up taxes (http://www.dutchnews.nl/news/archives/2010/04/how_to_raise_35bn_cut_spending.php)
Thursday 01 April 2010
Increasing the own risk element in health insurance to €775, cutting the minimum wage by 10% and reducing basic welfare benefits - these are just some of the ways the government can get its spending under control, according to civil service recommendations made on Thursday.
The recommendations are the work of 20 government working parties, set up to indentify ways of boosting the government coffers by a structural €35bn. The Dutch budget deficit is set to reach 6% this year.
The working parties were set up last year, before the cabinet collapsed, to suggest spending cuts and tax increases which would effectively amount to a 20% reduction in ministerial budgets.
General election
The groups were asked to speed up their work, so the suggestions can be included in political party manifestos ahead of the June 9 general election.
The proposals range from bringing in extra charges for rush-hour travel, slashing civil service numbers and bringing in a €5 fee for visits to the family doctor.
Unions have already condemned some of the suggestions, saying they will increase divisions between rich and poor.
Drastic action
Prime minister Jan Peter Balkenende said the new government will not be able to avoid drastic action.
The 20 reports offer 'very great insight' into the options to make savings, the prime minister told reporters. 'It is now up to political parties to state what they will or will not do.'
The current cabinet is not able to take any action because it is in a caretaker role.
Each of the recommendations has a price tag attached, allowing parties to pick and choose the various elements.
What do you think of the proposals? Take part in our poll (http://www.dutchnews.nl/poll/index.php?poll_id=137)
Housing market:
Increase rents in popular areas and for high earners living in rent-controlled housing
Cut mortgage tax relief to a maximum €500,000 and limit tax break to 42% tax band
Unemployment, benefits and work
Cut unemployment benefit entitlement to one year
Reduce level of unemployment benefits
Merge various disability benefit systems in one unifying benefit
End link between benefits and inflation
Reduce government childcare contributions
Reduce minimum wage by 10%
Public sector
Slash provincial government and water board staffing from 13,000 to 1,650
Reduce the number of provincial governments from 12 to between five and eight
Reduce defence ministry staff by 23,000 and reduce support for international missions
Schools
Increase productivity, focusing on improving primary school education
Reduce spending on special education
Increase parental fees for school books
Increase primary school class sizes – recognising this will hurt standards
Reduce teaching hours in secondary schools
Higher education
Replace student grant system with loans
Double student fees for universities and colleges
Boost productivity and efficiency
Medical and residential care
Increase own-risk element in health insurance to up to €775
Reduce basic insurance package provisions
Introduce €5 charge for family doctor visits
Boost competition between healthcare providers
Reform ABWZ residential care system by giving patients an individual budget, shifting responsibility to local councils or health insurance companies
Increase fees for residential care homes
Stop paying for care for the mentally-handicapped with an IQ of over 70
Mobility, water
Introduction of peak period surcharge for motorists and public transport users
Increase public transport ticket prices 10% to pay for maintenance
Introduce kilometre tax for lorries
Scrap road building projects
Energy and climate
Scrap subsidy system and increase energy taxes
Force home owners of older buildings to improve insulation
Development aid and diplomacy
Reduce subsidies to independent aid organisations
Reduce number of countries which get aid
Close embassies and consulates
Immigration, integration
Reduce length of asylum procedure
Make immigrants pay for integration courses
Law and order
Merge the 26 separate police forces into one body
Increase fines
Merge some justice and home affairs ministry departments
Make event organisers pay for policing
Privatise some jails and the fire brigade
Legalise soft drugs trade (generating tax income)
(Sources, Financieele Dagblad, Telegraaf and Volkskrant)
Thursday 01 April 2010
Increasing the own risk element in health insurance to €775, cutting the minimum wage by 10% and reducing basic welfare benefits - these are just some of the ways the government can get its spending under control, according to civil service recommendations made on Thursday.
The recommendations are the work of 20 government working parties, set up to indentify ways of boosting the government coffers by a structural €35bn. The Dutch budget deficit is set to reach 6% this year.
The working parties were set up last year, before the cabinet collapsed, to suggest spending cuts and tax increases which would effectively amount to a 20% reduction in ministerial budgets.
General election
The groups were asked to speed up their work, so the suggestions can be included in political party manifestos ahead of the June 9 general election.
The proposals range from bringing in extra charges for rush-hour travel, slashing civil service numbers and bringing in a €5 fee for visits to the family doctor.
Unions have already condemned some of the suggestions, saying they will increase divisions between rich and poor.
Drastic action
Prime minister Jan Peter Balkenende said the new government will not be able to avoid drastic action.
The 20 reports offer 'very great insight' into the options to make savings, the prime minister told reporters. 'It is now up to political parties to state what they will or will not do.'
The current cabinet is not able to take any action because it is in a caretaker role.
Each of the recommendations has a price tag attached, allowing parties to pick and choose the various elements.
What do you think of the proposals? Take part in our poll (http://www.dutchnews.nl/poll/index.php?poll_id=137)
Housing market:
Increase rents in popular areas and for high earners living in rent-controlled housing
Cut mortgage tax relief to a maximum €500,000 and limit tax break to 42% tax band
Unemployment, benefits and work
Cut unemployment benefit entitlement to one year
Reduce level of unemployment benefits
Merge various disability benefit systems in one unifying benefit
End link between benefits and inflation
Reduce government childcare contributions
Reduce minimum wage by 10%
Public sector
Slash provincial government and water board staffing from 13,000 to 1,650
Reduce the number of provincial governments from 12 to between five and eight
Reduce defence ministry staff by 23,000 and reduce support for international missions
Schools
Increase productivity, focusing on improving primary school education
Reduce spending on special education
Increase parental fees for school books
Increase primary school class sizes – recognising this will hurt standards
Reduce teaching hours in secondary schools
Higher education
Replace student grant system with loans
Double student fees for universities and colleges
Boost productivity and efficiency
Medical and residential care
Increase own-risk element in health insurance to up to €775
Reduce basic insurance package provisions
Introduce €5 charge for family doctor visits
Boost competition between healthcare providers
Reform ABWZ residential care system by giving patients an individual budget, shifting responsibility to local councils or health insurance companies
Increase fees for residential care homes
Stop paying for care for the mentally-handicapped with an IQ of over 70
Mobility, water
Introduction of peak period surcharge for motorists and public transport users
Increase public transport ticket prices 10% to pay for maintenance
Introduce kilometre tax for lorries
Scrap road building projects
Energy and climate
Scrap subsidy system and increase energy taxes
Force home owners of older buildings to improve insulation
Development aid and diplomacy
Reduce subsidies to independent aid organisations
Reduce number of countries which get aid
Close embassies and consulates
Immigration, integration
Reduce length of asylum procedure
Make immigrants pay for integration courses
Law and order
Merge the 26 separate police forces into one body
Increase fines
Merge some justice and home affairs ministry departments
Make event organisers pay for policing
Privatise some jails and the fire brigade
Legalise soft drugs trade (generating tax income)
(Sources, Financieele Dagblad, Telegraaf and Volkskrant)