The German Federal Cabinet approved the draft budget for 2026 on Wednesday, alongside a medium-term financial plan extending to 2029, according to multiple media outlets citing government sources.
The draft budget proposes new debt of €89.9 billion for the coming year, supplemented by a further €84.4 billion from designated special funds. Total expenditures outlined in the new budget reach approximately €520.5 billion. Projections indicate a rise in expenditures to €572.1 billion by 2029.
However, the financial plan for 2027 to 2029 reveals a significant budgetary gap totaling approximately €172 billion. Addressing this shortfall will be a key focus in the coming months.
Federal Finance Minister Lars Klingbeil (SPD) is scheduled to present the approvals at a federal press conference later today. An initial consultation in the Bundestag is planned for September, with a parliamentary budget resolution anticipated in November.