Budget Revenues

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The Sixth State Reform, which entered into force on 1 July 2014, brought about substantial changes to the Flemish budget landscape.

First and foremost, the size of the Flemish budget has grown significantly. Flemish resources rose from 27.45 billion euro in 2014 to 42.6 billion euro in the 2018 - budget draft, an increase of no less than 55%.

In addition to major transfers of powers and resources from the federal level, the Sixth State Reform also provided for a large increase in Flemish tax autonomy. From now on, Flanders collects a larger part of its resources (34%) via its own fiscal instruments: regional taxes (15%), and the additional personal income tax charge, the so-called 'surcharges' (18%).

Another consequence of the Sixth State Reform is that it ensures that the sub-regions now contribute to the recovery of public finances at general government level. For Flanders, this (annual) contribution amounts to 1.6 billion euro up until 2018, of which the major part concerns the two first years after the reform (750 million euro in the both the 2015 and the 2016 budget).


Major Items of ESA-corrected Revenues AB 2018
AB 2018 REVENUES
Major items of the ESA-corrected revenues (in thousand euro)
  AB 2018
Gross supplementary personal income tax charge 7.604.701
Regional resources SFA 2.415.031
Community resources SFA 22.458.458
Re-estimate SFA 2018 -1.005.074
Specific grants 88.280
Regional taxes 6.556.570
Allocated income 500.531
Non-allocated income 204.566
Lottery funds 30.099
Revenue by institutions within consolidation perimeter 3.772.239
Total Revenue 42.625.401
incl. commuter allocation contribution 0
incl. contribution consolidated finances of Entity I -1.639.606
incl. contribution cost of demographic ageing -79.806
incl. contribution to civil servants' pension plans -112.417
Total contributions -1.831.829