What is going on?
The problem does not only occur in Utrecht. Dutch municipalities expect a joint budget deficit of 1.1 billion euros in the so-called ‘ravine year’ 2026. Last year they still had 3.7 billion euros left. In 2026, the municipalities will together receive approximately 3 billion euros less from the government. The following year, municipalities also expect a deficit of a billion euros. In the meantime, they retain the same number of tasks and assignments, such as youth care, elderly care and energy issues. Staff shortages make implementation extra difficult.
Accounting firm BDO emphasizes that the government finds the relatively high contributions to municipalities unsustainable for its own finances in the long term. Due to implementation problems, municipalities did not make all planned expenditure in recent years, causing their reserves to increase.