Budget Revenues

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The Sixth State Reform, which entered into force on 1 July 2014, brought about substantial changes to the Flemish budget landscape.

First and foremost, the size of the Flemish budget has grown significantly. Flemish resources rose from 27.45 billion euro in 2014 to 44.76 billion euro in the 2020 - budget revision, an increase of no less than 63%.

Due to the covid-19 crisis there is a one-off effect of 727 million euro on the revenues mainly due to a decrease of the registration tax.

If there would already be an adjustment of the SFA grants in 2020, with the recent economic forecasts of the Federal Planning Bureau, the revenues would decline by another 2.1 billion euro.

In addition to major transfers of powers and resources from the federal level, the Sixth State Reform also provided for a large increase in Flemish tax autonomy. From now on, Flanders collects a larger part of its resources (30.3%) via its own fiscal instruments: regional taxes (12.8%), and the additional personal income tax charge, the so-called 'surcharges' (17.5%).

Another consequence of the Sixth State Reform is that it ensures that the sub-regions now contribute to the recovery of public finances at general government level. For Flanders, this (annual) contribution amounts to 1.6 billion euro up until 2018, of which the major part concerns the two first years after the reform (750 million euro in the both the 2015 and the 2016 budget).


Major Items of ESA-corrected Revenues BR 2020
budget review 2020
Major items of the ESA-corrected revenues (in thousand euro)

                                                                                                           BR2020

Gross additional tax on PIT

7,817,845

Regional resources under SFA

2,516,194

Community resources under SFA

23,593,791

Specific allocations SFA

99,399

Regional taxes

5,727,439

Self-generated non-fiscal allocated revenue

583,405

Self-generated non-fiscal non-allocated revenue

264,91

Lottery funds

30,225

Institutions’ consolidation scope

4,131,134

TOTAL

44,764,342

incl. commuter allocation contribution

0

incl. contribution for consolidation of global public finances

-1,712,573

incl. cost of ageing contribution

-129,657

incl. accountability contribution

-131,054

Total contributions

-1,973,284