AMSTERDAM: The Dutch Government has announced that its budget deficit will be much lower than expected this year thanks to strong tax revenue growth.
The Finance Ministry said on November 25 that tax receipts in 2016 are EUR4.3bn (USD4.6bn) higher than forecast thanks to buoyant corporate and personal income tax, and value-added tax revenues.
However, the Government has indicated that it does not intend to use its unexpected tax windfall to finance tax cuts. The surplus cash will instead be used to reduce the deficit and government debt.
As a result, the budget deficit forecast for 2016 has been revised down from 1.1 percent of gross domestic product to 0.4 percent of GDP.
