According to outgoing Minister Sigrid Kaag (Finance), the additional 2 billion euros to combat poverty is the “highest achievable” after the cabinet fall. As treasury keeper, Kaag emphasizes that the bill will not be left on the plate of the future generation.
“We pushed the boundaries last year with a significant purchasing power package of 17 billion euros and an energy ceiling. Our assessment is that there is currently no more room.”
Moreover, poverty policy is much broader than just financing, the minister believes. “It concerns education, housing and is often also related to health problems. Cause and effect are often inseparable. It is not without reason that we have chosen in this cabinet to appoint a Minister for Poverty Policy and Participation.”
According to Kaag, it has never been a realistic goal during this cabinet period to reduce poverty to zero. “We also have to cover everything properly and we do not want to pass on an increasing debt. Choices will have to be made.”
The outgoing cabinet did not want the national debt to increase and therefore had to look for 2 billion euros. This is largely paid for by higher income earners. This group will pay slightly more tax.
‘Budget deficit a point of concern’
Yet this possibility was limited. “As an outgoing cabinet, you cannot have completely new discussions with each other about a further tax shift. Furthermore, the budget deficit remains a point of concern and we do not want to saddle future generations with debts. But doing nothing is not an option either,” said Kaag.
That is why the package is also paid for by financial windfalls and by increasing taxes on alcohol and tobacco.
Poverty is maintained with this package
Without the extra 2 billion euros, the number of adults and children in poverty would increase. That was “unacceptable” for the cabinet, says Kaag. At the same time, the number of people in poverty will not decrease as a result of this package of measures.
Families with several children benefit most from the package of measures. For example, 1.1 billion euros will go to increasing the child-related budget. Not only will the amount per child increase, but more families will also be eligible for this income-related scheme.
The rent allowance will also increase. More than 700 million euros have been made available for this. At the same time, the extra energy allowance that people with low incomes received will disappear in 2022 and this year. The emergency fund for people who can no longer pay their bills will continue to exist next year.
The House of Representatives will debate the million-dollar bill on Wednesday and Thursday during the annual General Political Considerations (APB). Almost all parties came up with their own wish list of points on which they want to adjust the budget on Tuesday after the speech from the throne.
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