{
  "title": "Kingdom of the Netherlands—Netherlands Selected Issues",
  "publication": "IMF Staff Country Reports, September 22, 2004",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/kingdom-of-the-netherlands-netherlands-selected-issues-17736",
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  "summary": "This Selected Issues paper for the Kingdom of the Netherlands—Netherlands underlies recent fiscal developments. Fiscal deterioration during economic slowdowns is not unusual and can be justified on economic grounds.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Fiscal deterioration during economic slowdowns is not unusual and can be justified on economic grounds.\n- Although the real spending ceilings were largely adhered to, procyclical elements embedded in the fiscal framework contributed to the structural fiscal deterioration.\n- Sharp declines in the revenues from corporate profit taxes and social security contributions, as well as increases in social security spending, were largely responsible for the cyclical deterioration."
    },
    {
      "heading": "Analysis themes",
      "content": "- Fiscal framework performance\n  - Real spending ceilings: largely adhered to.\n  - Procyclical elements: embedded in the fiscal framework and contributed to structural fiscal deterioration.\n- Revenue and expenditure drivers of deterioration\n  - Revenues: sharp declines in corporate profit taxes and social security contributions.\n  - Expenditures: increases in social security spending played a major role in cyclical deterioration."
    },
    {
      "heading": "Policy implications and considerations",
      "content": "- Recognize that fiscal deterioration during economic slowdowns can be economically defensible, but distinguish cyclical from structural drivers.\n- Reassess fiscal framework design to mitigate procyclical elements that can exacerbate structural deterioration.\n- Monitor and address volatility in corporate profit tax revenues and social security contributions to improve resilience.\n- Evaluate social security spending policies to manage cyclical pressures without undermining automatic stabilizers.\n\n---\n\n Content in this bundle\n\n- Kingdom of the Netherlands--Netherlands: Selected Issues\n  - Kingdom of the Netherlands--Netherlands: Selected Issues (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Kingdom of the Netherlands--Netherlands: Selected Issues (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: September 22, 2004",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781451829464.002",
    "Fiscal deterioration during economic slowdowns is not unusual and can be justified on economic grounds.",
    "Although the real spending ceilings were largely adhered to, procyclical elements embedded in the fiscal framework contributed to the structural fiscal deterioration.",
    "Sharp declines in the revenues from corporate profit taxes and social security contributions, as well as increases in social security spending, were largely responsible for the cyclical deterioration.",
    "Fiscal framework performance",
    "Revenue and expenditure drivers of deterioration",
    "Recognize that fiscal deterioration during economic slowdowns can be economically defensible, but distinguish cyclical from structural drivers.",
    "Reassess fiscal framework design to mitigate procyclical elements that can exacerbate structural deterioration.",
    "Monitor and address volatility in corporate profit tax revenues and social security contributions to improve resilience.",
    "Evaluate social security spending policies to manage cyclical pressures without undermining automatic stabilizers.",
    "**Kingdom of the Netherlands--Netherlands: Selected Issues**"
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