The Dutch deficit will exceed 4 percent by the end of 2011. The projection is an increase from June estimates, Minister of Finance Jan Kees de Jager has announced.

In June, the Bureau for Economic Policy Analysts predicted a year end budget deficit of 3,7 percent.

During his annual autumnal financial summary, the Minister also said the national debt will also rise to 65 percent of GDP.

He said government spending had added to the increase. In particular, he mentioned set-backs in social security (400 million euros) and in care (1.2 million euros).

"The Dutch economy is facing difficulties," De Jager told reporters. "The cabinet is working to get the government's finances in order and reduce the budget deficit still further." 

The Netherlands has one of the highest creditworthiness ratings of the euro zone's 17 countries.