The Belgian Federal Government’s budget reforms remain on course despite the severe critique from the Court of Audit, according to Budget Minister Vincent Van Peteghem, who insists adjustments will be made only if necessary.
In a report released on Friday, the Court of Audit cautioned that the benefits projected by the government might be significantly overestimated, especially concerning employment growth.
“Our coalition agreement includes several measures essential for safeguarding the budget and the welfare state in the long term. We need to implement what we agreed upon,” Van Peteghem stated. “If outcomes don’t align with our projections, we will make adjustments.”
The minister noted that budgets inherently contain uncertainties due to factors like interest rates and socio-economic variables.
Van Peteghem also addressed a leaked communique to Finance Minister Jan Jambon, suggesting that the proposed capital gains tax might cost more than it generates.
“There are many exemptions and removed taxes in the proposal, so the expected revenue isn’t achieved,” Van Peteghem explained, noting the plan to exempt shareholders selling their stocks after ten years. “People will wait ten years and a day to sell, affecting returns negatively,” he added.
