Belgian budget deficit will increase by an additional €2 billion

Belgium will face a budget deficit of €46.6 billion by 2029. That is 2 billion euros more than the estimate made in March. The deficit of all governments combined then came to €44.7 billion or 6.3 per cent of GDP.

By 2029, Belgium's budget deficit will rise to 46.6 billion euros, or 6.5 per cent of gross domestic product (GDP), report De Standaard and De Tijd after they were able to see the new estimates. The deficit is mainly located at the federal government level, where costs due to an ageing population and interest charges add up. The debt ratio is also rising further, from 106.9 per cent of GDP today to 119 per cent of GDP in 2029.

On Wednesday afternoon, top officials monitoring public finances will meet for final adjustments. The figures may still change slightly but major changes are no longer expected. The deficit increase will in any case put additional pressure on the federal government formation. Formateur Bart De Wever wants to form a government and get the budget in order as soon as possible. But he still has to engage in talks with other parties who are more reluctant to make extreme cuts. 

Belgium has one of the worst budgets in the European Union. The European Commission is therefore obliging the next Belgian governments to cut costs by at least 0.5 to 0.72 per cent of GDP annually. By 15 October, Europe expects a draft budget for 2025.

^{Bart De Wever © BELGA PHOTO NICOLAS MAETERLINCK}