The Dutch caretaker government has announced budget cuts of 3.2 billion euros ($US4.2 billion) for 2011, but the final figure may be much higher.
Spending on healthcare, immigrants and government workers will all be slashed in a bid to reduce the budget deficit.
The BBC reports cuts of 18 billion euros are foreseen over the next four years.
Opening parliament, Queen Beatrix has warned the country about the deficit.
"The state debt and deficit have risen to a level that is over time not sustainable," she said. "Structural financial measures have to be taken now."
Major savings in Tuesday's budget include increasing patient healthcare payments, slowing pay raises for government employees and reducing a tax break for childcare.
Under EU rules, the Netherlands is meant to reduce its budget deficit to 3% of GDP or less by the end of 2013.
The budget was drawn up by the outgoing government of Prime Minister Jan Peter Balkenende, whose coalition collapsed in February after a row over military involvement in Afghanistan.
The results of the general election in June were inconclusive. Talks on a new government have dragged on for months.
