The Walloon government begins its budgetary adjustment this Thursday morning. Compared to the forecasts made when this budget was drawn up at the end of the year, there is a hole of 505 million euros to fill.
This slippage in finances is essentially due to an increase in expenditure, fueled in particular by inflation and indexation (of civil servants’ salaries and subsidies).
A sum to which it will be necessary to add an additional 100 to 200 million euros, to meet expenses in the coming months: for the reception of Ukrainian refugees and for an upcoming vaccination campaign.
Ministers should therefore find up to 700 million in savings. To respect the planned budget trajectory, i.e. a deficit of 4.1 billion euros (the difference between revenue and expenditure in the region).
Among the potential avenues to remedy this slippage, the government might draw on the reserves of public bodies such as Forem. It might also scale down the ambitions of its recovery plan a little,…
The financial situation of Wallonia is particularly worrying: the covid crisis, the aid linked to this pandemic, the floods, etc. have further weighed down already alarming finances. From now on, our debt is scrutinized with a dim view by the rating agencies, and the rise in interest rates will increase our charges. Finally, in 2024, transfers from Flanders will be reduced little by little.