The Federal Cabinet has approved the core guidelines for the 2027 federal budget, along with the financial planning framework through 2030. This announcement was made by Federal Finance Minister Lars Klingbeil (SPD) on Wednesday. The established guidelines are intended to create “certainty and planning assurance” forming the foundation for significant investments and key reforms necessary to secure jobs and boost economic growth.
Minister Klingbeil stated that the government plans to emphasize investments and reforms to fortify Germany, making it “stronger and more resilient to crises”. The central priorities outlined include making record investments, implementing fundamental reforms, and maintaining a strict path toward fiscal consolidation, all designed to present a balanced federal budget.
According to the plan, the government intends to allocate 118.5 billion euros in investments for 2027. These funds are earmarked for crucial sectors such as transport infrastructure, digitalization, and climate protection. Furthermore, defense expenditure will see an increase intended to modernize the German armed forces and help meet NATO capability goals. Financially, the plan introduces new levies, including a plastic tax and a sugar tax.
The overall budget figures are substantial: 543.3 billion euros are planned for 2027, increasing to 586.9 billion in 2028, 588.9 billion in 2029, and topping out at 625.1 billion euros in 2030. Specifically for 2027, the defense budget is calculated at 105.8 billion euros-an amount representing approximately a 75 percent increase compared to the previous year.
The legislative timeline for the 2027 budget is detailed: the Cabinet resolution is slated for July 6, followed by the first reading in the Bundestag between September 7 and 11. The initial passage through the Bundesrat is scheduled for September 25, with a preparatory cleanup session set for November 12. The second budget week in the Bundestag will take place from November 23 to 27, culminating in the final approval of the budget by the Bundesrat on December 18.