The German Federal Parliament, the Bundestag, commenced its budget week on Tuesday, marking the start of deliberations on the 2025 budget proposal. Finance Minister Lars Klingbeil emphasized the importance of presenting and constructively discussing two budget plans with the government within a relatively short timeframe, highlighting it as a “strong signal.
The proposed 2025 budget adheres to a defined strategy, outlined by the Minister as a combination of investment, reform and consolidation. Klingbeil refuted criticisms suggesting insufficient allocation, asserting significant investment is being directed towards infrastructure, digitalization and innovation. He further stated the budget aims to improve equity within the country.
Overall spending planned within the budget totals approximately €502.55 billion. This figure represents a slight reduction of €460 million compared to the government’s initial budget proposal, reflecting adjustments made during a recent session of the Budget Committee on September 24th. However, it still signifies a 5.4% increase compared to the budgeted figures for 2024.
Tax revenues remain unchanged at €386.84 billion. Other income, however, has been adjusted downwards by €460 million, now projected at €33.92 billion. The net borrowing requirement remains consistent with the initial proposal at €81.87 billion.
The 2025 Budget Act is expected to be passed by the Bundestag on Thursday.
