Financial outlook for The Hague less unfavourable

The Hague’s budget deficit for 2013 is lower than expected.

Instead of a structural deficit of € 23.1 million, the municipality is now calculating an amount between € 4.5 and € 10.3 million. There will be an additional amount of € 7 to 10 million budgeted to relieve bottlenecks. Added together, it leads to a deficit between € 11.5 and 20.3 million.

The expected hole is smaller as a result of a lower decrease in subsidy from the national government’s Gemeentefonds than was expected in May. The national government is making less severe budget cuts than projected in the spring. It’s also become clear that the government will not interfere with salaries due to the wage increase agreed upon in the new collective labour agreement for municipal employee