A newly established Federal Ministry for Digitalization and Modernization (BMDS) is projected to operate with a substantial budget of €6.5 billion. This figure, revealed in a yet-to-be-published report from the Federal Audit Court to the Bundestag’s Budget Committee and reported by “Welt” and Business Insider, significantly exceeds the preliminary figures released by the Federal Ministry of Finance. The discrepancy had previously drawn criticism from opposition parties during parliamentary budget debates.
According to the report, while the BMDS’s direct budget allocation is set at €2.5 billion, the remaining €4 billion will be sourced from the “Infrastructure and Climate Neutrality Fund”. This fund consolidates federal spending related to broadband network expansion and components of modern administrative processes.
The largest portion of the BMDS budget is anticipated to originate from the Federal Ministry of Transport, contributing €3.44 billion earmarked for “Digital Infrastructure”. The Federal Ministry of Finance will contribute €1.68 billion, primarily allocated to the IT Center of the Federation (ITZ Bund). A further €1.32 billion will come from the Federal Ministry of the Interior, designated for “IT and Network Policy and Modern Administration”. The Federal Ministries of Economics and Justice are projected to allocate comparatively smaller sums: €60 million and €700,000 respectively.
The Ministry itself notes in the Audit Court report that the figures for planned budget item 24 remain provisional, pending ongoing negotiations between departments concerning the specifics of the task transfer. Consequently, adjustments to the precise structure of the budget item may be possible.