The Federal Audit Office has issued a new report criticizing the Federal Government’s fiscal policy, accusing Federal Finance Minister Lars Klingbeil (SPD) of adopting a negligent approach to debt management.
The 58-page report, which was forwarded to the Budget Committee of the Bundestag, warns that the gap between government revenues and expenditures is expanding significantly. According to the auditors, this shortfall is projected to climb by 2.7 percentage points by 2027, reaching 28.9 percent. Should current trends continue, this financial deficit is expected to reach 31.2 percent by 2030.
The auditors currently estimate that the gap in the budget planning for the period up to 2030 amounts to 108 billion Euros. The report emphasizes the persistent pressure for fiscal consolidation, urging the German Bundestag to hold the federal government accountable for addressing this growing financial imbalance.
