The document ‘General summary BR 2020’ describes the budget review of 2020. Besides a detailed explanation it also gives budgetary figures of the Flemish Community and the consolidated entities.
The new Government of Flanders continues to follow the budgetary orthodox path. As in 2017 and 2018, the budget will be structurally balanced in 2019 with even a surplus of 237.5 million euro. 2020, on the other hand, will be a more difficult year for the budget, as we are experiencing the effects of the economic downturn. A number of measures will also reach cruising speed in 2020, such as the impact of the federal tax shift, a quarter of which will be financed by the regions, and of the collective bargaining agreements concluded with the social partners in welfare, education and the Government of Flanders. Furthermore, we are implementing a Flemish tax shift with regard to housing taxation. The reduction in registration duties will immediately be reflected in our budget, while the phasing out of the housing bonus will lead to a gradual increase in budget margins.
On top of all this came also the COVID-19 crisis which led to a decline in the revenues and extra measures that were taken on the expenditures side. All these measures are one-off effects that will only appear in 2020. With the budget revision 2020, the one-off COVID-19 effects and a possible adjustment of 2.1 billion of the SFA grants in 2020, the budget deficit will be 6.3 billion euro.
The document ‘General summary BR 2019 and IB 2020’ describes the budget review of 2019 and the initial budget of 2020.