GDPgebonden

GDPgebonden is a descriptive term used in Dutch policy discourse to denote policies that adjust with the size or growth of the economy as measured by Gross Domestic Product (GDP). It can refer to fiscal rules, budgets, subsidies, or transfers that are indexed to GDP, or to contracts and wage agreements tied to GDP performance. The label is not a single formal doctrine but a category for discussing automatic features that scale with economic activity.

Mechanisms and design variations include growth-indexed designs, where annual changes depend on the GDP growth rate, and level-indexed designs, where total funding or obligations depend on the current GDP level. Debt or expenditure rules anchored to GDP aim to keep fiscal policy proportionate to the economy, while revenue or benefit indexing preserves purchasing power.

Uses and applications of GDPgebonden arrangements appear in both public policy and private contracts. Governments may employ GDPgebonden budgeting to stabilize fiscal policy through economic cycles, maintain comparability across countries, or ensure that public services expand with economic activity. In some cases, private sector wage agreements or public contracts also incorporate GDP-based indexing.

Advantages and criticisms: Proponents point to predictability, automatic stabilization, and alignment with macro conditions. Critics warn of potential procyclicality, data lags in GDP measurement, complexity in calibration, and risks that such indexing overlooks distributional outcomes or non-GDP social goals.

See also: automatic stabilizers, fiscal rules, debt-to-GDP ratio, GDP growth indexing.