Budgetary consequences of the sixth state reform.
The sixty state reform envisages the transfer of competences from the federal state to the communities and regions. This transfer covers a long list of matters, which includes the labour market and fiscal autonomy for the Brussels-Capital Region and the family allowance and health care for the CCC, ...
The transfer of competences goes hand in hand with a transfer of budgetary resources and a transfer of personnel from the federal government to the federated entities. The adapted special funding law governs the funding of the country's various federated entities, so that the competences may be effectively exercised.
This means that 20 billion euros are to be transferred from federal level to the communities and regions and the regions are to enjoy additional fiscal autonomy to a level of 12 billion euros.
- The transfer of competence represents an amount of around 2 billion euros for the Region.
These two billion euros are made up of regional personal tax (PT) and the solidarity mechanism, replacing the budget of the former personal tax grant amounting to 1.1 billion. The figures also includes the refinancing of Brussels, the mobility grant and resources for the communities, worth 400 million. The newly transferred competences represent around 500 million.
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As a result the following is expressed in the budget: