January 1, 1997

Calculations of the budgetary maneuvering room 1999-2002

This working paper reports on CPB’s calculations of the scope for tax burden relief, spending increases and/or deficit reduction during the next cabinet period (1999-2002).

The outcomes may help political parties in formulating their election platforms on financial and economic policies for the coming cabinet period. The calculations are made on the basis of cautious assumptions about economic growth. This reflects the experience that it is much easier to deal with windfalls in the public finances than it is to overcome setbacks. In addition, estimates are made of the growth of public expenditures in the coming years. There turns out be a net budgetary maneuvering room of 0,7% of GDP (level of 2002) that can be used for deficit reduction, additional expenditures and/or collective burden relief.

Authors

Jan Dirk van de Hoef
Reijer Janssen
Henri Tamerus
Michiel Vergeer
Danny Zwerk