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Federal Budget 2022: Budget Committee plans record debt

2022-05-20T05:33:39.429Z

This time, the deputies quickly agreed. After barely 15 hours of deliberation, the budget committee of the Bundestag reports that the budget is in place. The new debt should be almost 140 billion euros.



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Reichstag building: Relief for many households

Photo: FILIP SINGER / EPA

The traffic light coalition wants to take on almost 140 billion euros in new debt in its first full year of government.

This was the result of the final deliberations of the budget committee early Friday morning in Berlin.

The federal budget for 2022 now provides for expenditure totaling around 495.79 billion euros - slightly more than estimated by Finance Minister Christian Lindner (FDP).

The Bundestag wants to adopt the draft budget in the week from May 30th to June 3rd.

The reason for the late decision is the federal elections with a change of government last autumn.

The ministries have been working with a provisional budget since the beginning of the year.

In the light of global crises

In the almost 15-hour so-called adjustment session, the budget holders decided on several changes to Lindner's draft.

The bottom line is that investments have now increased by 705 million euros in comparison, and total expenditure by 11.9 billion.

The new borrowing of 138.94 billion euros proposed by the Minister of Finance will still be adhered to because significantly more income is planned at the same time.

"The parliamentary budget deliberations were marked by major, global crises," explained the coalition budget holders Dennis Rohde (SPD), Sven-Christian Kindler (Greens) and Otto Fricke (FDP) afterwards.

However, Lindner had already made the biggest adjustment himself: With a supplementary budget of almost 40 billion euros, he reacted to the Russian war in Ukraine and, in addition to taking in refugees, also financed aid for companies and citizens.

The explosive rise in energy prices and the high inflation rate are to be cushioned somewhat, above all by way of tax cuts.

Large sums flow into relief for many households, for example through a heating cost subsidy and an immediate surcharge for families with children.

For all taxpayers, the basic allowance on which no income tax is paid increases.

In addition, energy taxes on fuel will be reduced for three months.

All employees subject to income tax receive an energy price flat rate of 300 euros.

New aid packages were also put together for the economy and depreciation rules changed.

Additional debt could become necessary if the Bundestag decides on the planned cash injection for the Bundeswehr.

The money should, however, be taken away from the core budget in a special fund and not be counted towards the debt brake.

This upper credit limit will be suspended again for the current year due to the crises, and Lindner wants to comply with it again next year.

mike/dpa

Source: spiegel

All business articles on 2022-05-20

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