Last year, Amsterdam received 196.5 million euros more than it spent. This is largely due to the unexpectedly rapid mass return of tourists, but also because money intended for projects in the city remains on the shelf.
This is evident from the annual accounts presented by alderman Hester van Buren (Finance) on Wednesday, the overview of income and expenditure in 2022. The plus on the budget is an unexpected windfall for the municipal treasury: earlier this year it was thought that Amsterdam would spend 37.1 million euros would be short.
The fact that the difference is so large is mainly due to the definitive end to the corona measures. Due to previous lockdowns and their lagging effect, a loss of 65 million euros in revenue was expected on the tourist tax. However, tourists returned faster than expected this year, so that tourism revenues (now totaling 139.4 million euros) were 18 million euros higher.
Also not to be underestimated in the positive net result is the large bag of money that Amsterdam received from the government last year: 3.7 billion euros. That is 44.2 million euros more than was budgeted in October and approximately 430 million euros more than expected at the beginning of last year. The annual contribution that Amsterdam receives grows or shrinks in line with national expenditure. Because considerably more money was spent on defense due to the war in Ukraine and corona support was still ongoing, that contribution has been increased.
Not just good news
Still, the fact that Amsterdam has 200 million euros left is also cause for concern. For example, alderman Van Buren writes that the municipality is suffering from the staff shortage, as a result of which vacancies cannot be filled and money remains on the shelf. ‘The staff shortages are putting the organization under pressure and ultimately also the results (in areas such as housing, transport, energy transition, maintenance, care and education),’ says Van Buren.
Money has also been left behind because projects are delayed. This applies, for example, to the maintenance of quays and bridges. For example, 4.5 million euros was left behind for work on bridges in the North, East and South due to ‘not having a clear scope/assignment’.
Also striking is the 45.7 million euros that was intended for a number of projects, including the plans to create more 30 km/h zones and the current work to improve the cycle paths around Nieuwmarkt. That money was left on the shelf last year. Reference is made not only to the staff shortage, but also to the ‘complex decision-making processes due to citizens’ objections’.
Refill piggy bank
Part of the money will be spent in the near future, but the vast majority of the 196.5 million euros left over from last year will be used to replenish the municipal piggy bank. Partly due to the corona crisis, this general reserve had shrunk to almost 75 million euros, too little to be able to withstand future crises. The starting point is that the piggy bank will be refilled to 302 million euros by 2024 at the latest.
Financial concerns are still there. It is expected that Amsterdam will receive considerably less money from the government after 2027, which means that a budget deficit of 90 million euros is imminent for the city. Last year’s coalition agreement already announced 38 million euros in cuts, including 5.5 million euros structurally in healthcare from 2025.
Alderman Van Buren also stated last September that all investments should be critically examined and that further cutbacks cannot be ruled out.
In mid-May, Van Buren will present its long-awaited Spring Memorandum. This should make it clear what room there is to invest in the growth of the city. It must also become clear whether, for example, money has been found for the bridge over the IJ, which is desired by many.