THE HAGUE, 20/01/01 - Finance Minister Gerrit Zalm is not ruling out that there will turn out to be no more money for spending this year than that already budgeted. The reason for this is slowing economic growth, meaning that this will turn out closer to the figures on which the cabinet has based its plans.

Figures from the Central Planning Bureau (CPB) had already signaled last December that the economy was slowing. The CPB then revised its GDP growth forecast for 2001 downward, to 3.5 percent from 4.0 percent on Prince's Day (Budget Day) in September. According to Zalm, similar noises will be heard when new figures on the state of the Dutch economy are made known in February. Zalm believes the CPB may then estimate GDP growth at under 3 percent.

The coalition parties, the conservative VVD, labour PvdA and center-left D66, will soon discuss financial policy for the remainder of the current administration. The most important topic on the agenda is the spending policy agreed under the coalition accord at the start of its term of office. Extra spending was only to be undertaken if planned spending turned out to be below budget. Income windfalls, for example those that arise due to higher than expected economic growth, were to be used for redeeming the national debt and tax-cutting.

The PvdA and D66 want extra investments this year in health care and education, and are questioning Zalm's financial policy in this regard. But the VVD and Zalm want to keep to the agreed rules of the game. They think that extra spending will also be possible while doing so.