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Finance Minister Christian Lindner (FDP)
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Fabian Sommer / picture alliance / dpa
Finance Minister Christian Lindner looks to the new year with concern.
In view of the difficult budget situation, he has now called on his cabinet colleagues to draw up savings plans.
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In the federal budget for 2024, cuts cannot be ruled out, wrote the FDP politician at the start of the budget in a letter to the highest federal authorities, which is available to the dpa news agency.
Cuts could become necessary if revenue shrank or there were additional burdens compared to planning.
"Every department is therefore called upon to determine the corresponding potential for reallocation of its expenditure at an early stage," wrote Lindner.
The finance minister called for “budgetary priorities to be set”.
For the entire further legislative period, "all expenditures would have to be put to the test".
If the debt brake is adhered to, there will be no additional leeway in the budget in 2024.
Lindner insists on complying with the debt rule enshrined in the Basic Law in the coming year without exception.
Depending on the economic situation, the federal government may only take out small loans.
Exceptions are only allowed in emergencies and were recently made because of the corona pandemic and the Ukraine war.
Warning of further inflation
As a result, the federal government's debt ratio will rise to 70 percent of economic output, Lindner warned.
The billions invested in relief packages were necessary to stabilize the economy and protect citizens in the acute crisis.
But now you have to be careful not to push inflation even further.
Germany must therefore move away from its expansive fiscal policy, reduce its deficit and build up financial buffers, he wrote.
The finance minister had already made it clear at the end of last year that he saw no further scope for relief.
With the agreed price brakes and tax measures, the government had already "reached the limit," he told the "Neue Osnabrücker Zeitung" shortly before Christmas.
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