Budget main points: 'It is time to give something back,' says prime minister

Despite the risks of a trade war and a hard Brexit, it is time to give the people of the Netherlands something back, prime minister Mark Rutte said on Tuesday evening, when asked about the government’s 2019 spending plans. The economy and business The economy will grow by 2.5% in 2019 Unemployment will continue to fall to 3.5% The state debt will dip under 50% of GDP Brexit could cost the Netherlands 1% to 2% of GDP Inflation to rise to 2.6% The budget surplus will hit €10bn, but the structural deficit will drop to 0.4% 95% of the population will have an average of 1.5% more to spend The 15% tax on dividends will be scrapped, costing an estimated €1.9bn Corporation tax will be lowered from 25% to 22.24%, rather than 21%, to pay for the dividend tax cut Read ING’s take on the ‘mildly expansionary’ budget Private taxation The difference between the three income tax bands will be narrowed in preparation for the earlier-announced shift to two tax bands by 2021. International affairs and Brexit Extra spending to total €8bn, of which €6bn is for public services €100m to offset the cost of Brexit, including 900 new customs officials, plus €18m for the food and product safety board and €3m for the border police €40m more for diplomatic missions in Africa Dutch budget for humanitarian aid will rise by €165m to €370m in 2019. Read the foreign ministry’s strategy for 2019 Crime and security Increase in the defence budget of 1.23% a year for five years €95m extra to combat cyber crime by the end of this cabinet period €291m extra for the police, to provide for 1,100 new officers €100m extra to combat crime which is undermining local and provincial government Other issues: