The Federal Cabinet approved the draft budget for 2026 on Wednesday, alongside a medium-term financial plan extending to 2029. According to multiple media outlets citing government sources, the framework outlines significant fiscal projections for the coming years.
The draft budget anticipates new debt of €89.9 billion for the upcoming year, supplemented by a further €84.4 billion from designated special funds. Total expenditures within the new budget are projected at approximately €520.5 billion. The financial plan indicates a rise in overall expenditures to €572.1 billion by 2029.
However, the medium-term financial plan for 2027 to 2029 reveals a projected budget gap totaling roughly €172 billion. This gap will require further consideration and potential adjustments in subsequent planning stages.
Federal Finance Minister Lars Klingbeil is scheduled to present the cabinet’s decisions at a press conference this afternoon. An initial consultation within the Bundestag is planned for September, with a parliamentary budget approval expected in November. The approved framework sets the stage for detailed debate and scrutiny as the budget process moves forward.
