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Budget at a record high: Federal Government wants to spend 362 billion euros next year

2019-11-29T15:08:08.037Z


More money for day-care centers, climate protection and defense: The Bundestag has adopted a record budget for next year. While the Grand Coalition praises, the opposition speaks of "chaos."



The Bundestag has decided with the votes of the Grand Coalition a record budget for the coming year. He plans spending of 362 billion euros - more than ever before.

Expenditure rises by 5.6 billion euros compared to the current year. Among other things, the black-red coalition wants to spend more money on social, environmental and climate protection, railways and digital schools. Despite the weakened economy and less strong tax revenues, Finance Minister Olaf Scholz (SPD) renounces new debts - the black zero is the seventh consecutive year.

The Green MP Tobias Lindner accused the coalition, however, trickery. Because the federal government takes less money through taxes, as he wants to spend. The bill only works because Scholz gets 10.63 billion euros from one of the reserves that the German government created after the refugee crisis. In addition, Scholz expects that five planned billions will not be spent in the end anyway. "This has nothing to do with a black zero," Lindner accused him. "That's diced budget policy, that's chaos."

Scholz calls the argumentation of the critics "irritating"

Green, left and several economic research institutes called for a loosening of the dogma black zero: Given the low interest rates, the federal government could take cheap money and invest more. "There is no serious economist who says black zero would be a good idea," said Left Housekeeper Gesine Lötzsch.

Scholz, on the other hand, defended his budget: the Confederation nonetheless significantly increased its investments. "It's a bit irritating that some people always put this aside quickly to consider why they need to make new debts," he lamented.

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In fact, the Grand Coalition plans record investment of 42.9 billion next year. The problem, however, is that many funds were not called in the end, because in the municipalities planning capacities are missing and the construction industry is working at the utilization limit.

The federal government also wants to use the additional funds to implement the first decisions from the climate package. There are subsidy programs for the replacement of old oil heaters or more charging stations for electric cars.

In addition, the VAT on train tickets in long-distance transport is to be reduced - a project that the Federal Council, however, has slowed down once. The Landkammer decided to call the Conciliation Committee, in which the Bundestag and Bundesrat must seek compromises. The equally controversial CO2 price for fossil fuels and heating should start in 2021, however.

Source: spiegel

All business articles on 2019-11-29

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