Federal Finance Minister Lars Klingbeil plans nearly 204 billion euros in new debt for 2027. The cabinet is set to approve the draft on Monday.
Lars Klingbeil (SPD) plans core budget expenditures of 555 billion euros and new borrowing of 118.7 billion euros. Total new debt including special funds reaches 203.7 billion euros. This is nearly eight billion euros more than outlined in the April targets.
The draft proposes tapping reserves of 6.8 billion euros. Defense spending is to rise to 110 billion euros. At the same time, cuts of 500 million euros in parental benefits and 600 million euros in housing benefits are planned.
The federal government expects economic growth of 0.9 percent in 2027. Green Party budget expert Sebastian Schäfer criticized the draft. He accused Klingbeil of losing control over the budget.
