Brussels, 01/07/2013 (Agence Europe) - Warned by the European Commission to cut its public deficit to 2.7% of GDP this year, the Belgian government agreed on new savings in the 2013 budget on Sunday 30 June to the tune of €750 million (see EUROPE 10855).
Belgian Prime Minister Elio Di Rupo said it was a good, balanced agreement that combined affordable savings, fair new income and support for SMEs. The €750 million worth of savings include a safety margin of some €200 million.
The Belgian media say that the savings will be made as follows: 60% in spending cuts, 35% in rises in tax income and 5% miscellaneous. Some of the spending cuts will be in defence and development cooperation. The back-to-school benefit will be cut by 15% in 2013, and then by another 15% in 2014. The growth in healthcare spending will also be cut back. In terms of income, a tax on big business is being introduced for the first time and is expected to net €140 million, a third of which will be used to help SMEs. Likewise for the capital gains tax on unit trusts. Tobacco and alcohol duty (including beer and wine) will increase and lawyers' fees will be subject to a 21%VAT rate. A new bank levy will net €40 million in 2013 and €170 million in 2014.
Next year, Belgium will have to find savings of €3.3 billion, including €2.8 billion at federal level. Sunday's agreement means that more than 80% of the work for the 2014 budget has already been done, stated Di Rupo. (MB/transl.fl)