The Federal Cabinet has approved the key parameters for the 2027 federal budget and the financial planning until 2030. Federal Finance Minister Lars Klingbeil (SPD) announced the plans on Wednesday, noting that these parameters aim to provide “binding certainty and planning stability”. The overall goal is to form the foundation for major reforms and investments, supporting job creation and economic growth.
The government’s strategy centers on utilizing investments and reforms to make Germany “stronger and more resilient against crises”. According to Klingbeil, priorities include “record investments” “fundamental reforms” and maintaining a commitment to “strict consolidation” to present a balanced budget.
In terms of investment, the government plans to allocate €118.5 billion for 2027. These funds are designated for various sectors, including transport infrastructure, digitalization, and climate protection. Furthermore, defense spending is slated for an increase to upgrade the armed forces and meet NATO capability goals. The plan also mandates the introduction of fees for plastic and sugar.
The projected total federal budget figures are substantial: €543.3 billion for the upcoming year (2027), rising to €586.9 billion in 2028, €588.9 billion in 2029, and reaching €625.1 billion in 2030. For the 2027 defense budget specifically, an allocation of €105.8 billion has been calculated, representing an increase of approximately 75 percent compared to the previous year, 2025.
Regarding the legislative timeline for the 2027 budget, a Cabinet resolution is scheduled for July 6. The Bundestag is expected to hold its first reading between September 7 and 11, followed by the first vote in the Bundesrat on September 25. The detailed revision session is set for November 23 to 27, and the final budget adoption in the Bundesrat is anticipated on December 18.
