The Budget Committee of the Bundestag approved the federal budget for 2027 on Friday morning with a record budget of around 560.9 billion euros. The planned net borrowing is reportedly almost 123 billion euros, which represents an increase of about four billion euros compared to the original draft by the federal government. In addition, credit-financed investments are planned for infrastructure and the Bundeswehr, potentially increasing total debt to over 200 billion euros.
The reduction in the electricity tax, a project from the coalition agreement, remains undecided. The decision on this is set to be made in the Coalition Committee on Tuesday, as no financing has been found so far. The plastic tax was eliminated following resistance from the economy, while the introduction of the sugar tax has been postponed until 2028.
The Bundestag will ultimately vote on the budget during the parliamentary meeting week from November 24 to 27. The budget sets how much money the ministries are allowed to spend in 2027 and which projects are financed.
