This site has been archived on 27/01/17

Navigation path

The website of the Directorate General for Economic and Financial Affairs has moved.

You will find all publications issued after July 2015 on the new web presence.

Federalisation and fiscal consolidation: the Belgian experience

Author(s): Gerrit Bethuyne (Directorate General for Economic and Financial Affairs)

Federalisation and fiscal consolidation: the Belgian experience pdf (235 kB) Choose translations of the previous link 

Since the constitutional reform of 1970, Belgium has evolved from a strictly unitary state into a rather complex federal structure of regions and communities. These regional entities now cover over 20% of all government expenditure. They are financed mainly with transfers from the federal personal income tax and from VAT revenue as well as some regional taxes. Budgetary conventions, largely based on agreements between the federal and regional level, act as internal stability programmes, setting medium-term targets for regions and communities. Clear objectives and an ex-post evaluation by a relatively independent supervisory agency (the High Finance Council), combined with the possibility of limiting the borrowing capacity of non-compliant regions or communities, have created the necessary conditions to turn the historically high deficit into a balanced budget.

Your feedback is welcome!

Please send any comments or suggestions to the email address given at the end of each issue.

(Country Focus 16. September 2005. Brussels. 6pp. Tab. Free.)

ISSN (internet) 1725-8375 (online)

Additional tools

  • Print version 
  • Decrease text 
  • Increase text