Netherlands Cuts Development Aid Amid Financial Strains

Netherlands’ new right-wing government has unveiled a controversial budget plan, slashing development aid by a staggering two-thirds over the next three years.

This move comes as the government grapples with a ballooning deficit, expected to rise to 2.8% of GDP next year.

Led by Prime Minister Dick Schoof, the government aims to cut the development aid budget by 300 million euros in 2025 and 500 million euros in 2026, totaling a massive 2.4 billion euros by 2027.

This drastic reduction will see the aid budget shrink from 3.5 billion euros this year to a mere fraction of its current size.

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The Netherlands has long been a major donor of development aid, traditionally aiming to spend 0.7% of its GDP on aid.

However, the government’s finances have deteriorated rapidly in recent years due to lavish spending on COVID-19 pandemic measures and soaring energy prices.

In contrast, the government is set to lower taxes on gas usage and reduce tax rates for lower-income earners next year, in a bid to protect consumers’ spending power.

Additionally, the government has pledged to increase defense spending by over 10% next year and boost funds for border controls as part of a broader crackdown on asylum migration.

This move has sparked concerns among development organizations and critics, who argue that the drastic aid cuts will have far-reaching consequences for global development and the Netherlands’ reputation as a development champion.

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