So the important adviser to the government takes into account that not all the money planned can be spent during the term of the government. This is especially the case for plans in defense and housing. This is where things like finding and training the right staff, sourcing issues, deadline for bidding and permitting procedures play an important role.
The CPB also warns that the large size of the package can have negative side effects. There is a risk that additional government spending will boost wages and prices rather than economic activity, according to accountants, for example. That’s while inflation has been very high lately. The financial burden on future generations will also increase sharply, for example, due to the rise in government debt.
In general, the economy will grow faster than it would have been due to the plans in place. Employment in government and education is also expected to increase, and unemployment to decrease.
In the long run, the coalition agreement will lead to a slight reduction in structural employment, but also to a slightly more equal distribution of income. The new policy will also ensure that the slight decline in household purchasing power is offset to some extent.
Unlike in the past, the CPB did not pre-calculate its plans for the coalition parties, also because not all the measures have been worked out in detail yet. This should provide more space for ministers and parliament to make their mark on policy. But the House of Representatives was not satisfied with this and asked coordinator Mark Rutte to make calculations, even before discussing the government’s statement. This is on the agenda for Tuesday and Wednesday next week.
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