By 83206,Nl Times

Copyright nltimes

The caretaker Cabinet’s budget proposals for 2026 includes a series of austerity measures amid growing debt levels, though military spending will rise by billions of euros. The plan, unveiled on Tuesday with a series of tax proposals, will have to cobble together support in Parliament, as the Cabinet only has a minority of MPs and senators back the national government. Under the current right-wing Cabinet, the rate of government debt is projected to rise for the first time since 2020, when expenditure were meant to help cover the impact of the coronavirus pandemic.

With a debt of 548.4 billion euros, the national debt will rise to 46.6 percent of annual gross domestic product in 2025, according to estimates from the Ministry of Finance. The increase in the rate of national debt is the result of a shortfall of revenue, which is expected to total 425.1 billion euros this year against expenditures of 457 billion euros. The national debt level is still well below the European norm of 60 percent.

The treasury could further be dented by 8 million euros from the dramatic increase in drivers appealing traffic fines with the assistance of companies who only receive payment when the appeal is successful. The figure was provided by the Ministry of Justice and Security on Prinsjesdag, the third Tuesday in September, when the Cabinet releases its budget for the following year.

Primary, Secondary, and Higher Education Spending in 2026

Academic universities expect another 325 million euros to be cut from their annual budgets, 25 million more than previously announced. Applied sciences universities also expect more cuts.

Education in the Netherlands will face hundreds of millions of euros in cutbacks, under the Cabinet’s plans, with educators union AOb estimating the total slashed at 800 million euros. Funding to address the teacher shortage will be approximately 272.4 million euros, with 54 million euros to entice people to switch from their current careers to a job in the classroom.

About 5 million euros will be made available to educators willing to take on more hours.

Over 47 million euros will go to MBO vocational schools to help incoming students achieve standardized levels in language and mathematics.

Schools will continue to receive money to address students who need additional help and resources.

Defense Spending in 2026

The Dutch defense budget will shoot up by 14.5 percent next year, an increase of 3.4 billion euros. The growth in budget will take place earlier than previously planned.

Next year, the Netherlands is projected to spend 2.2 percent of GDP on defense. This will increase the annual budget to 26.8 billion euros.

Money will be spent on personnel, weapons systems, munitions, new satellites, and drones.

Justice and Security Spending in 2026

The Netherlands wants to budget 118 million more euros to pay countries to house rejected asylum seekers who cannot return to their home countries. The additional budget earmark would take effect in 2028.

The Cabinet wants to increase prison capacity by spending 35 million euros to address shortages starting in 2028, and 50 million euros annually from 2031. This includes opening a new juvenile facility in Harreveld for 70 prisoners.

Another 15 million euros will be made available to increase payments to legal aid attorneys.

The judicial system will receive 50 million euros more to invest in addressing a variety of issues, particularly those related to family law and cases involving young children.

The Dutch Cabinet wants to encourage Ukrainians to return to their home country as soon as they are willing to voluntarily travel back.

More budget will be made available to help Ukrainian refugees learn the Dutch language and enter the nation’s job market.

Municipality and Election Spending

Roughly 728 million euros more will be added to the budget to help municipalities deal with youth care funding deficits. This amount is on top of the 3 billion euros already committed this year.

Some 56 million euros will be earmarked to research solutions to the widespread issue of building foundation problems.

Approximately 12 million euros will be made available annually to build and maintain more shelters for victims of domestic violence.

Funding for an artificial intelligence development facility in Groningen will increase from 70 million euros to 130 million euros.

An amount of 60 million euros will be spend on organizing the general election on October 29, when voters will head to the polls to determine the parties in the Tweede Kamer, the lower house of Parliament. This then leads to the negotiation period to form a new Cabinet.

Groningen residents, organizations, and businesses will qualify for 2.5 billion euros to address poverty, mental healthcare shortfalls, youth programs, and other issues linked to decades of gas extraction and the frequent earthquakes caused by the mining.

The government wants to commit to making the Panorama Mesdag a national museum. The building is recognizeable to visitors of Scheveningen Beach in The Hague as the prominent round structure along the shore.

Energy and Farming Spending

The Cabinet wants to spend 1 billion euros to encourage the construction of off-shore wind farms in the North Sea.

The Cabinet wants to spend 146 million euros to takeover farms, and in funding to help farms modernize with more robotics, equipment, and sustainability measures.

A 146-million euro plan to subsidize farm expenditures on “red diesel” fuel has been scrapped.

Public Transport and Roadways

A total of 20 million euros will be made available to increase safety and security at rail stations.

Some 12 million euros will be on the table to purchase body cameras for those working with national railway NS.

An estimated 43 million euros will be put towards the development of more rest stops and sanitation facilities, particularly for truck drivers who spend all day on the road.

The Cabinet confirmed it no longer plans to slash 110 million euros from the public transportation budgets of the country’s largest cities.

Household and Work Spending

To make it possible for up to 96 percent of childcare costs to be covered for all families, the Cabinet plans to allocate roughly 199 million euros. This will make daycare and afterschool care nearly free for all families with working parents.

An earmark of 213 million euros will be set aside to compensate those who were paid to little by benefits agency UWV, and to determine how to address situations where people were overpaid in recent years.

An earmark of 111 million euros will be available to boost the gross salaries of people who are given the chance to enter the workforce via a social development firm. Their salaries inadvertently fell in 2025 due to policy errors, and the Cabinet plans to make it possible for them to receive about 37 euros more per month in compensation.

Diplomatic Missions and Foreign Aid Spending

Some 475 million euros will be reserved to help provide aid during international emergencies and national disasters.

Roughly 100 million euros will be available for foreign trade and development spending.

The Netherlands will still close down some embassies, consulates, and diplomatic missions, but a final determination has not been made.