German Parliament approves 2025 national budget
German Budget for 2025 Approved with Record Investments
The German Bundestag has approved the budget for 2025, marking a significant milestone in the country's financial planning. The budget, presented by Federal Chancellor Friedrich Merz, represents an increase of 5.4 percent compared to the target figure for 2024.
The budget for 2025 stands at approximately 502.55 billion euros, a decrease of 460 million euros from the government's draft budget. This reduction was made during the reconciliation session on September 4 by the budget committee. The tax revenues for the year remain at 386.84 billion euros, while other revenues have decreased to 33.92 billion euros.
One of the central components of the decisions made on Thursday was the budget supplementary act, which includes the implementation of new budgetary rules. These new rules aim to partially exempt security-relevant expenditures from the debt brake of the Basic Law.
Federal Finance Minister Lars Klingbeil defended the new special fund, which is expected to provide significant investments of 115 billion euros in 2025, in the final debate on the budget. He described the new special fund as a "massive shift in German financial policy."
Additional multi-billion-euro loans from special funds such as the infrastructure special fund will be taken for the 2025 budget. With the parliamentary decision, the money from the new special fund can finally start flowing.
The net credit requirement in the core budget for 2025 remains unchanged at 81.87 billion euros. The budget decision for 2025 was significantly delayed due to the end of the coalition.
Since the beginning of the year, the so-called provisional budget management has been in effect. The budget for 2025 does not include any changes to the previously mentioned budget committee's reduction of 460 million euros.
The budgetary rules aim to provide a more flexible framework for the government to respond to economic challenges and opportunities. The approval of the budget marks a crucial step forward in Germany's economic strategy for the coming year.
The budget approval was not without controversy, with 324 members of the Bundestag voting in favour of the government's draft budget, while 269 voted against, with no abstentions. The debate on the budget was intense, with various political parties expressing their concerns and suggestions.
Despite the opposition, the budget for 2025 represents a significant step forward in Germany's economic planning and is expected to drive economic growth and investment in the coming year.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
