Federal election: Ministry of Finance does not expect the 2025 budget until July

After the new Bundestag elections, the Ministry of Finance does not expect a budget for the coming year until July at the earliest. This emerges from a circular on the so-called provisional budget management that the ministry sent to the highest federal authorities.

Until then, strict rules apply to expenses: for example, citizens’ benefits, pensions, child benefits and funding from existing programs will continue to be paid. The same applies to construction work that has already been planned, for example on the railway. However, new projects cannot be initiated easily.

The draft budget for 2025 must be completely re-discussed by the cabinet, Bundestag and Bundesrat after the federal election. If the coalition negotiations go quickly, it could be passed in the Federal Council on July 11th, according to the Finance Ministry. This would be the last session before the parliamentary summer break.

Ministries can use 45 percent of the intended budget

To ensure that the ministries do not spend a disproportionate amount of money by then, they are initially only allowed to use 45 percent of the budget that the now collapsed traffic light government had planned for 2025. The basis for this calculation is the government draft approved by the cabinet, including some adjustments by the budget committee in the Bundestag. The SPD, Greens and FDP had recently planned to spend almost 490 billion euros, more than a tenth of which was on credit.

However, the ministries’ quota for the provisional budget management is not set in stone: the finance minister can adjust it at any time. In addition, it may also be exceeded for legally justified obligations. The ministry and the budget committee can approve other excesses. The ministry emphasizes that the state is able to act at any time.