According to a budget ruling, the traffic light has to plug billions in holes. A plus from last year comes at just the right time.
The federal government spent billions less than planned last year. As a result, the withdrawal from the reserve will be reduced by 6.3 billion euros, as the Ministry of Finance announced in the preliminary budget statement.
The funds therefore contribute to financing additional burdens in the 2024 federal budget. According to a budget ruling, the traffic light has to plug billions in holes.
The course of budget consolidation should be continued, it was said. “We have to prioritize spending more than before,” said Finance Minister Christian Lindner (FDP). “We will have to work harder to find financial flexibility in the future. This is the only way we can remain able to act in the future and prepare for times of crisis.”
After the financial policy turnaround, the economic policy turnaround must now come. “The current economic development is leading to falling tax revenues. Our country therefore needs a dynamization package for the economy: less bureaucracy and more incentives for private investments.”
According to the ministry, of the investment expenditure of 61.1 billion euros estimated in the 2023 budget, 55 billion euros, or around 90 percent of the funds, have actually been spent.
Source: Stern
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