Social security budget out of control by €2 billion
Friday, 24 February 2017
The Social Security deficit will be three times larger than anticipated. The government had overestimated receipts. L’Echo, De Tijd and La Libre Belgique are reporting this today (Friday).
The Social Security deficit for 2017 was even considered to be €261 million at the end of 2016. Yet a new report, addressed to members of the Social Security Management Committee, reveals that this deficit is actually likely to be of the order of €794 million. A difference of more than €530 million.
The value of fiscal receipts is more disappointing compared to federal government predictions. L’Echo is reporting that tax deducted at source on liquid assets will bring in €281 less than predicted this year, whilst VAT income will be less by approximately €40 million. Social Security will receive €321 million less in its coffers.
Furthermore, Social Security expenses will also increase, owing to increased inflation. This will lead to increased civil servant wages and allowances sooner than previously expected.
La Libre Belgique also stresses that the federal government will go into its budgetary conclave during March. Taking account of this budget having got out of hand, the coalition must thus be ready to find €2.151 billion from somewhere.