December 8, 2022

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The Court of Auditors warns: "Interest costs on Flemish government debt are rising rapidly" |  money

The Court of Auditors warns: “Interest costs on Flemish government debt are rising rapidly” | money

Flemish debt is growing rapidly as a result of spending on the treatment of the Corona crisis and the war in Ukraine. Next year it will increase by 6 billion euros, for a total of 45 billion. Then the Flemish debt amounts to 74.23 percent of the revenue.

According to the budget completed in September, the deficit will be booked until 2026. Until then, the debt will continue to increase, causing interest costs to rise rapidly. “An increasing share of revenue is needed to be able to pay interest costs,” says the State Audit Bureau in its budget analysis. In 2027 it will already be more than 2 percent.

However, revenues are growing, mainly due to rapid inflation. Flanders had 52 billion euros to spend this year, next year that will rise to 57 billion and the year after that to 58 billion. The debt ratio and deleveraging rate are important considerations in determining the maximum allowable spending growth.

Earlier it became known that our country is in terms of the federal budget He got down to the worst student in the class In Europe, due to the rapid rise in public spending. The federal government provides corona and energy subsidies to everyone, but the system of installments and checks is not sufficiently focused on those companies and families who really need it, the European Commission analyzes, which also makes them expensive measures.

The growing national debt also comes at a high price. Because interest rates are rising, so are our interest costs. In 2023 we will pay more than 8 billion federally for this, and in 2024 this will increase to 9.6 billion euros.

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