General political framework and objectives

The stability programme for 2008-2011 sets out Belgian fiscal policy for the coming period. This programme is based on the commitments made in the March 2008 coalition agreement. The current government came to power after a period of protracted negotiations and an interim government in office for three months.  

According to estimates from the National Accounts Institute, the general government accounts closed with a deficit of 0.2% of GDP in 2007. The assumed target of a surplus of 0.3% of GDP was not reached, partly because the non-recurring measures provided for in the budget were not actually implemented.

Against a backdrop of rising inflation, a worldwide economic slowdown and rising ageing-related expenditure, a balanced budget has been put forward for 2008. This was only possible through an extremely cautious spending policy and a contribution from all sub-sectors.

In the coalition agreement, the government committed itself to achieving a structural surplus for the whole public administration from 2009 onwards. This surplus must reach at least 1% of GDP by the end of the current legislature, i.e. in 2011. In this way, by the end of the government's term of office, fiscal policy will be back on the original path set out in the amended law on the Ageing Fund.

The government wants to meet this target via a fair balance between control over expenditure and growth in revenue. In close consultation with the regions and communities, it will determine the contribution that each level of government, including the local authorities, should make towards achieving this collective goal. The federal government will carry out a budget audit during the month of July. When the 2009 budget is drawn up, a prefiguration will also be established for the following years. 

This commitment should enable our country to continue to bring down its public debt ratio, so as to be able to cope with population ageing-related expenditure in a sustainable manner. In 2007, the general government's overall debt ratio stood at 84.9% of GDP (including the Rail Infrastructure Fund's debt). In the future, the public debt ratio will continue to shrink, coming down to 71.1% of GDP by the end of 2011. 

Fiscal policy is combined with an ambitious socio-economic programme, giving top priority to promoting employment. This, effectively, is an important lever for the long-term viability of the socio-economic regime. In the context of a global employment strategy, the activation policy will be reinforced and the policy of reducing the charges imposed on earned incomes will be continued, notably for medium to low incomes. The entrepreneurial spirit will be encouraged, thanks to an action plan focusing on small and medium-sized enterprises. As it is a major source of well-being and prosperity, the system of social protection will be strengthened, while particular attention will be paid to the environment and sustainable development.