The federal government plans to incur more new debt in the coming year than previously planned. Higher expenditure is planned for climate protection and health, for example.
The federal cabinet has approved the government draft for the federal budget for 2022. Once again, the budget approved on Wednesday is shaped by the consequences of the corona crisis.
According to the draft, the federal government wants to incur more new debt in the coming year than previously planned. Specifically, a net borrowing of 99.7 billion euros is planned, as can be seen from a cabinet proposal. In the benchmarks presented in March, the Ministry of Finance had expected a net borrowing of 81.5 billion euros for 2022. However, there are now plans to increase spending on climate protection and health, for example. The federal government had already taken on billions in new debts in 2020 and 2021.
The budget plans are, so to speak, subject to change, because the new Bundestag elected in autumn has to pass the budget. There could therefore still be significant changes.
According to the draft, the debt brake anchored in the Basic Law will also be suspended in the coming year against the background of the Corona crisis. It stipulates that the federal government may only take out new loans to a very limited extent, namely a maximum of 0.35 percent of economic output. According to the draft, the federal government no longer wants to make use of the exemption from 2023.
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
