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The three parties in the German government have agreed on a funding gap in the state budget. The new debt has risen to 51.3 billion. The agreement provides for a reallocation of funds for the federally owned Deutsche Bahn.
The leaders of Germany’s traffic light alliance have once again reached a compromise on the national budget for next year – despite a budget shortfall of 12 billion euros. A government spokesman announced this on Friday. “The debt brake requirements of the Basic Law will continue to be observed and there will be no circumvention.” The planned additional debt will increase to 51.3 billion euros.
This was the draft provided to Reuters on Friday and voted on by ministries in the evening. The first draft approved by the cabinet on July 17 envisaged new debt of 43.8 billion euros.
Reallocation of funds at Deutsche Bahn
The agreement essentially provides for a reallocation of funds for the federally owned Deutsche Bahn. Accordingly, the so-called global underspending will be reduced by 4.5 billion euros to 12 billion euros. This is actually the budget shortfall. The government expects this figure to fall further due to economic developments. However, since the additional global spending is significantly higher than usual, Parliament now faces a larger budget review task.
In a draft presented in July, the Berlin government planned so-called spending cuts of 17 billion euros. The federal government assumed that the ministries would not spend all the money for the year anyway – for example because projects were delayed. This procedure is common, but the amounts are very high. (APA/DPA)
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