THE HAGUE, 16/09/00 - As surely as Princes Day comes round each year, there will always be news from the secret national budget that leaks out in advance. Here are a few of the main points.

The most important news on Princes Day is entirely positive: the present financial-economic position of the Netherlands is fantastic. Money is pouring into The Hague. This means the Cabinet can use some 20 billion guilders next year from surplus income from taxes and social security contributions to pay off part of the national debt. In addition, the Cabinet will earmark a considerable amount of extra money for items such as education and healthcare.

The 2001 budget also contains good news for individual citizens. For example, passports will become about 30 guilders cheaper, and car owners with relatively 'clean' cars will pay slightly ownership tax. On the other hand, the highest VAT rate will increase from 17.5 to 19 percent. This will make petrol and diesel fuel a little more expensive again.

The Cabinet is lightening the tax burden on individuals and companies by some 6.5 billion guilders as part of the new tax system. There will also be more generous fiscal facilities for research for technological firms. The capital tax for major companies that issue new shares will be reduced slightly. Enterprises that allow their personnel to take paid parenting leave will receive tax benefits.

And finally, there is the monarchy. At the request of the center-left (D66) in particular, Prime Minister Wim Kok promised last spring to give his ideas on modernization of this institution. But those who expect many fireworks on the subject on Tuesday will be disappointed. As far as the Prime Minister is concerned, the constitutional position of the head of state will remain unchanged.