Status: 01/14/2022 10:21 a.m
Despite the planned supplementary budget, the federal government will probably need significantly less debt for 2021 than planned. Finance Minister Lindner said net borrowing was EUR 24.8 billion lower than expected.
Last year, the federal government borrowed EUR 24.8 billion less than planned in the budget. This is the result of the provisional budget for 2021, as Federal Finance Minister Christian Lindner (FDP) announced in the Bundestag.
“It is not exhausted what would be possible”
The transfer of 60 billion euros to the energy and climate fund has already been taken into account. In the budget for the past year, new debts of 240 billion euros were planned because of the corona pandemic – more than ever before. But part of it was not needed.
“We do what is necessary, but we do not exhaust what is possible,” said Lindner. The state must create leeway again in order to be able to act in the next crisis.
Government wants to comply with the debt brake again from 2023
He also confirmed in the Bundestag that the government is striving to comply with the normal rules of the debt brake in the Basic Law 2023. In the years that follow, the debt ratio should be reduced. The traffic light government of SPD, Greens and FDP is also open to relief for citizens and companies. “There will be no tax increases.”
Second highest deficit since reunification
The Federal Statistical Office has meanwhile announced how high the total national debt was in 2021. The expenditures of the federal, state, local authorities and social security exceeded the income by 153.86 billion euros, as the authority announced in an initial estimate. This corresponds to a deficit of 4.3 percent of gross domestic product. This is “the second highest deficit since German unification”.
In the recession year 2020, there was a minus of 4.3 percent or 145.2 billion euros, after years of surpluses. For example, because of the Corona crisis, the state spent a lot of money on emergency aid to companies and to support hospitals.