The Dutch government recorded a budget deficit of €3 billion in the first half of 2025, the first time in four years that the government has been in the red during this period, according to provisional figures from Statistics Netherlands (CBS).
In the corresponding period last year, the government recorded a surplus of €2 billion.
Total public debt rose by close to €1 billion in the first half, to €492 billion, which equates to 42.7% of GDP.
Government spending
Government spending in the Netherlands increased by close to €15 billion in the first half of 2025, compared to the same period a year ago, with benefits accounting for €8 billion of this increase, largely due to a rise in the cost of state pensions and healthcare.
Remuneration for public servants and government investment each added a further €3 billion, rising by 7% and 14%, respectively. Investment in military equipment also accounted for some of the increase.
Government revenues also increased during the period, rising by close to €10 billion – or 4% – compared with the same period last year. Taxes and premiums accounted for €9 billion of this growth, with the remainder coming from higher receipts from interest-linked revenues and transfers from the European Union tied to measures supporting economic recovery following the COVID-19 pandemic and the energy crisis.
Debt ratio
Despite an increase in public debt, the debt ratio (of 42.7% of GDP) declined, given that the economy grew faster than public debt in relative terms.
‘The debt-to-GDP ratio remains close to its lowest point in the past 30 years. The only quarter in which the debt-to-GDP ratio lower was Q3 2024,’ Statistics Netherlands noted.
The Dutch Ministry of Finance expects debt to increase in the second half of the year, reaching €533 billion, or 44.9 percent of GDP. Read more here.
