The German Bundestag commenced deliberations on the 2025 budget this week, marking the start of a crucial period for fiscal planning. Finance Minister Lars Klingbeil emphasized the significance of presenting and constructively discussing two budget proposals with the government within a short timeframe, highlighting a collaborative approach within the parliamentary process.
The proposed 2025 budget is framed around a three-pronged strategy: investment, reform and consolidation. Minister Klingbeil addressed criticisms regarding investment levels, asserting that substantial resources are being allocated to infrastructure development, digitalization initiatives and fostering innovation across the nation. The budget also aims to promote greater social equity within the country.
Total planned expenditures within the budget amount to approximately €502.55 billion. This figure represents a slight reduction of €460 million compared to the initial budget proposal drafted by the government. This adjustment resulted from recent deliberations within the budget committee, which implemented minor cuts during a session held on September 4th. Despite this reduction, the budget maintains a 5.4% increase compared to the projected figures for 2024.
Revenue projections remain unchanged, with anticipated tax revenues set at €386.84 billion. Other income sources have seen a decrease of €460 million, now totaling €33.92 billion. The net borrowing requirement remains constant at €81.87 billion, mirroring the figures outlined in the original proposal.
The Bundestag is scheduled to vote on the 2025 budget bill this Thursday, concluding this stage of the budgetary process.