The budgeting week began in the Bundestag on Tuesday. Finance Minister Lars Klingbeil (SPD) urged patience during the introduction of the 2027 budget law this morning. He explained, “Economic institutes are currently revising their forecasts upwards one after another. This partly relates to our actions here. Public investments are having an effect, and the reforms we have initiated are contributing to this.”
The overall budget is planned to allocate approximately 555.4 billion euros in expenditures (compared to 524.5 billion euros in 2026). For future budget years, 367.8 billion euros are planned as authorization commitments; of this total, 48.3 billion euros are scheduled to become payable in 2028. These total expenditures are matched by equal revenue projections. According to the planning, 394.7 billion euros of this revenue will come from tax income (up from 387.4 billion euros in 2026), while 26.9 billion euros will come from administrative income (up from 22.9 billion euros in 2026).
The net credit uptake for the core budget is set to increase to 118.7 billion euros (+20.7 billion euros). Of this, 33.4 billion euros are allocated for borrowing that is permissible under the standard debt rules, which the federal government intends to utilize completely. An additional 85.4 billion euros will be taken on through the special appropriation for defense and security policy expenses. The Federal Ministry of Labour’s individual plan remains the largest single budget item, and the Ministry of Defence saw the greatest increase in allocation.
