The Flemish budget deficit is set to increase further in 2024, according to a monitoring report from the Department of Finance.
At the beginning of the year, the budget deficit was estimated at €2.647 billion, but by mid-year, it had risen to €2.923 billion. The latest figures, as of the end of October and projected for the remaining two months, now place the deficit at €3.340 billion.
These figures exclude the construction costs of the Oosterweel link and the Flemish Resilience Plan.
Despite the deficit, government revenue has exceeded earlier estimates. For example, income from the Climate Fund – earned from emissions rights and auction proceeds – is €129 million higher than expected.
Additionally, revenue from legal entities is €79.6 million above the mid-year adjustment figures, due to extra income from the Flemish Data Utility Company and subsidy recoveries from the Fund for Innovation and Entrepreneurship.
The increased deficit stems primarily from higher-than-expected expenditure. Various entities exceeded their allocated budgets, including VRT, Sport Flanders, Growing Up, AGIOn, GO! and Flemish Social Protection.
For instance, Flemish Social Protection’s spending has risen from €4.2569 billion to €4.2764 billion, mainly due to extra expenditure on the care budget for severely dependent individuals.
Similarly, VRT has incurred an additional €22.7 million in expenses, largely due to the purchase of sports rights (€32.7 million) at major event auctions. However, investments in new buildings have been reduced by €23.7 million, thanks to revised project plans.
Sport Flanders has spent an extra €21.9 million to settle commitments from 2023 that could not be met last year.
