Budget update: 39.2 billion new debt

Created: 04/27/2022, 16:27

Federal Finance Minister Christian Lindner (FDP) wants to take on new debts.

© Christophe Gateau/dpa

Finance Minister Lindner has to update his budget because of the Ukraine war.

He needs almost 40 billion more than he thought.

The opposition suspects deception.

Berlin - The federal cabinet has approved the supplementary budget presented by Finance Minister Christian Lindner (FDP) with almost 40 billion euros in additional debt.

The money is primarily intended to finance a relief package intended to mitigate the consequences of the Ukraine war for citizens and companies.

Overall, the federal government wants to take on 138.9 billion euros in new debt this year.

For a finance minister who has made the goal of solid public budgets a priority, the new borrowing is "not a satisfactory figure," emphasized Lindner.

"But it is also an expression of state-political responsibility that the federal government is acting this year." One cannot allow structural breaks to occur in the economy and one cannot accept that people suffer from rising energy prices.

With the Ukraine war, the economic challenges have worsened since he took office, said Lindner.

Germany now has to deal with two crises at the same time, the pandemic that has not been overcome and a war in Europe.

Refugees, energy prices and economic aid

The draft budget for 2022 is actually already being discussed in the Bundestag, and now it is getting an update.

Among other things, the costs for taking in refugees from the Ukraine, the planned reduction in energy taxes on petrol and the energy price flat rate of 300 euros for employees subject to income tax are subsequently taken into account.

In addition, 5 billion euros are earmarked for economic aid and 1.45 billion euros for humanitarian aid.

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The Union accused Lindner of tricks and deception at all levels.

Housekeeper Christian Haase (CDU) said he had promised that the supplementary budget would be limited solely to measures to deal with the consequences of the war.

"Then comes the surprise after Easter: At least 8 to 10 billion euros in the supplementary budget have no original connection to Ukraine."

Lindner explained that pandemic-related measures that had already been decided and approved by the budget committee had been taken, such as the extension of free citizen tests and vaccination centers.

Otherwise, all of this would have had to be worked into the last meeting of the budget committee before the decision was made in the Bundestag.

In addition, the federal government is making provisions for economic risks, such as falling tax revenues or higher unemployment due to the war.

3.7 billion euros are planned for this - not to create reserves, but as a buffer because of the unpredictable situation.

dpa