Finances: Klingbeil’s double household message | Stern.de

Large investments in growth and security – but also new large savings constraints: It is a double message to the federal budget that Finance Minister Lars Klingbeil presented in Berlin. The cabinet launched its draft for budget 2026. “The top goal is to secure jobs and ensure new economic strength,” said the SPD leader. It should be felt for citizens in everyday life that something improves. At the same time, a strict austerity course is necessary for the following years.

The government will massively demand the budget in 2027, said Klingbeil. Because as has been recognizable since the coalition negotiations, a gap must be closed. Current size: around 30 billion euros. To do this, an overall package must be put together, for which all ministries are responsible. “Everyone in the government will have to save,” warned Klingbeil and predicted: “I am sure that the popularity of the finance minister in the cabinet will not increase the next twelve months.”

Klingbeil already presented the second budget draft as a department head after a few weeks. He is planning expenses of 520.5 billion euros for 2026. That is 3.5 percent more than this year – the budget 2025 is to be decided by the Bundestag in September.

Investments are to be increased to 126.7 billion euros next year. For example, the renovation of bridges and railway lines, stronger digitization and more money for education is planned.

New debts of a total of 174 billion euros are also planned for 2026. Klingbeil wants to take out loans of 89.9 billion euros in the core budget. In addition, there are 84.4 billion euros in new debts from the two special funds for infrastructure and climate protection as well as for the Bundeswehr.

As usual, the work and social budget is the largest at 197.4 billion euros – that is almost four percent more than for 2025. The largest individual post remains the grant to pension insurance with 127.8 billion euros. 41 billion euros are estimated for the citizens’ allowance and the participation in the costs of accommodation and heating – around 1.5 billion euros less than 2025. The background is an expected revival of the labor market.

The Bundeswehr should get much more. Around 128 billion euros are planned for defense expenditure in 2026. In order to strengthen the Bundeswehr, the debt brake was relaxed for defense spending. The expenses should continue to increase massively in the coming years.

Higher commuter flat rate, lower gastro tax

In draft 2026 and financial planning by 2029, projects announced in the coalition agreement are shown, as the cabinet template stated. These include, for example, more funding for social housing and daycare centers, the continuation of the Germany ticket in local transport or an increase in the commuter flat rate to 38 cents from the first kilometer.

It is also shown to reduce VAT on dishes in the restaurant from 19 to 7 percent, for which the CSU in particular had mobilized. Klingbeil announced that he would make sure that “the price reductions caused by the lowering of the VAT also really arrive at customers and then the prices become more affordable”.

The minister also resolved directly that when it comes to commuter flat rate and gastro tax, he sees no opportunities to compensate for tax failures in the countries. “There are no scope,” he wanted to say clearly.

Contribution increases not off the table

For insured persons, the draft does not bring any additional security that health insurance contributions 2026 will not go up again. As for 2025, a loan of 2.3 billion euros is planned in the draft, and an earlier loan of one billion euros later is to be repaid. The Ministry of Health had made it clear several times that this would not be sufficient to prevent contributions in 2026. There are currently also consultations in the Bundestag at the 2025 budget.

The health insurance companies criticized that no additional budgetary funds are also provided. Klingbeil expressed the expectation that reform commissions come to results promptly. This brings him to the assumption “that we can do it so that we will not have any significant increases in contributions”. According to the coalition agreement, a commission for health insurance should not submit suggestions until spring 2027.

Large gaps a danger to the welfare state?

In financial planning for 2027 to 2029, which is part of the 2026 budget, a gap of around 172 billion euros is gone. It has grown compared to cornerstones in mid -June. One reason is compensation for municipalities and countries due to new tax relief for companies.

Klingbeil puts great expectations in the work of reform commissions on social security. There is a lot of savings potential. If there is no good job in these commissions, at some point “the chainsaw” would come. He didn’t want that. The SPD chief warned that it should not be about “ramming the welfare state into the ground”.

At the same time, revenue should be strengthened by the state to be less escaped. The fight against tax fraud and financial crime should therefore be a focus.

What there should be less money for

No money is intended for the time being to reduce ticket tax for flights from German airports. “There are currently no scope in the federal budget,” it said from government circles. There is also no talk of a electricity tax reduction for all companies and private households.

Increases are planned in the 2026 budget, for example in the development expenditure. In addition, there should be job cuts in the federal administration – only not with security authorities. In 2026, the savings rate is expected to be 2 percent.