Status: 04/25/2022 4:45 p.m
Because of the Ukraine war, Minister Lindner has to revise the federal budget for the current year: further debts of almost 40 billion euros will be necessary. Net borrowing is expected to increase to EUR 138.9 billion.
The federal government is planning almost 40 billion euros in additional debt for the current year. According to the Federal Ministry of Finance, the supplementary budget for the 2022 budget provides for another net borrowing of 39.2 billion euros.
In particular, additional costs and reduced income in connection with the Russian war of aggression against Ukraine are taken into account. The supplementary budget is to be decided by the cabinet on Wednesday.
A total of 138.9 billion euros in new debt
Together with the EUR 99.7 billion already estimated in the budget, the net borrowing for the current year now totals EUR 138.9 billion. The planned special fund to strengthen the Bundeswehr of another 100 billion euros, which is also to be financed from loans, is not yet taken into account.
However, this special fund is intended to cover expenses for several years. And according to the government’s plans, it should not be counted with a view to the debt brake stipulated in the Basic Law.
It was already clear that the budget for 2022 would be updated when Finance Minister Christian Lindner presented his plans to the cabinet in March: However, the consequences of the Ukraine war had not yet been priced in at the time.
Billions for economy and humanitarian aid
According to the ministry, there were selective, very targeted changes to the budget with the supplementary budget. Lindner deliberately did not want to open the entire budget again – and then be confronted with the enormous spending requests of the individual ministers.
Included are now, among other things, five billion euros for economic aid, 1.45 billion euros for humanitarian aid and one billion for the creation of a gas reserve, which is intended to prevent an energy crisis should Russia stop gas supplies.
14 billion for the unforeseeable consequences of the war
Also taken into account are the costs of taking in refugees, the reduction in energy tax on fuel, the flat-rate energy price (300 euros for all employees), the 100-euro child bonus and the 9-euro ticket for local transport. Almost 14 billion euros are earmarked as provisions – mainly for the economic consequences of the war that are not yet foreseeable, i.e. falling tax revenues or problems on the job market.
The budget was not sewn to the edge, the ministry said. It is not yet possible to say how much of the money will actually be used. It also remains to be seen whether Germany will keep Chancellor Olaf Scholz’s promise and actually invest two percent of economic output in defense this year.
Total budget rises to more than 480 billion euros
The budget volume will increase to 483.9 billion euros in the current year as a result of the supplementary budget. In addition to expenses directly related to the Ukraine war, it also includes general measures to cushion high energy prices as part of the relief packages decided by the coalition.
To a certain extent, the lower economic growth expected mainly because of the war as well as expenses in connection with the coronavirus pandemic are also taken into account. The latter concerns costs for vaccinations and tests as well as further financial relief for hospitals.
The additions are to be incorporated into the 2022 budget as part of the ongoing parliamentary budget deliberations. There are no changes to the financial planning for the coming years. The Ministry of Finance also wants to stick to complying with the debt brake again from 2023. Next, the budget committee of the Bundestag deals with the numbers.