The German government has committed to a significant surge in investment over the coming years, according to Finance Minister Lars Klingbeil. As the parliamentary debate on the 2025 budget commenced, Klingbeil announced record-level investments totaling €115 billion, representing a 55% increase compared to 2024.
The commitment extends beyond 2025, with projections indicating annual investments around €120 billion throughout the current legislative term. The Minister emphasized the importance of citizens experiencing the tangible benefits of these investments, citing examples like road repairs and school infrastructure upgrades.
Klingbeil framed these investments as a catalyst for economic growth, while also underscoring a commitment to equitable distribution. He envisions transforming the Finance Ministry into an “Investment Ministry” highlighting the dual objective of strengthening and modernizing Germany.
The proposed 2025 budget outlines total expenditures of €503 billion, up from €476.8 billion in 2024. Revenue is projected at €421.1 billion, compared to €427.5 billion the previous year. Tax revenue is expected to contribute €386.8 billion, while administrative revenues are estimated at €27.0 billion.
The net borrowing requirement (NKA) has considerably increased, reaching €81.8 billion, a substantial rise from the €39.0 billion recorded in 2024. The permitted net borrowing requirement is set at €49.7 billion, which is intended to be fully utilized. An additional €32.07 billion in new debt is being justified through a newly introduced constitutional provision.
