Brussels (Brussels Morning Newspaper) – Belgium’s federal budget deficit rises to 4.2% of GDP (€26.6B), says the Monitoring Committee. Minister-President Matthias Diependale and Prime Minister De Wever must plan measures to meet targets by 2029.
As VRT News reported, Belgium’s federal budget deficit continues to rise, raising concern among financial authorities. Flemish Minister-President Matthias Diependale (N-VA) presented his changes to the Flemish budget in the Flemish Parliament.
Meanwhile, the federal government was provided with new data from the Monitoring Committee. The latest report shows that the federal deficit is increasing. Officials indicate that the increase is indicative of continued pressure on national finances and the difficulty in containing public spending.
What is driving Belgium’s federal deficit to €39 billion by 2029?
The Monitoring Committee forecasts that Belgium’s federal budget deficit will continue to rise in the coming years. By the end of the government’s term in 2029, the deficit is expected to reach 5.5% of GDP, or more than €39 billion.
The rising deficit poses a challenge for the De Wever government. The deadline for agreement is on the 2nd Tuesday in October, 9, 2025, when the Prime Minister traditionally delivers the annual State of the Union address to the House of Representatives. By that date, the administration is expected to present a concrete plan to manage spending, reduce the deficit, and provide clarity to parliament and financial observers.
In July 2025, the Monitoring Committee estimated the federal deficit at 4.1% of GDP, or €26.2 billion. In the new update, published online, the Committee raised the figure to 4.2% of GDP, or nearly €26.6 billion. Experts monitoring the budget say this upward revision highlights the difficulties the federal government faces in balancing spending, growth, and debt.
The federal budget deficit of Belgium has been rising consistently over the last 10 years and has attracted concerns from economists and policymakers. The deficit was reported at 2.9 % of GDP in 2013, and it grew to 4.4 % of GDP by 2023. The Monitoring Committee also projects a continuation of this trend to a potential budget deficit of 5.4 % of GDP around the year of 2030, which would equal nearly €40 billion.
The experts say the persistent rise in Belgium’s budget deficit ultimately comes down to a number of issues, such as the social cost of ageing, interest payments on public debt, and defence expenditures. The government’s coalition agreement has set a target to reduce the deficit to below 3% of GDP before the next elections.
