Source reports indicate that the German government is planning to introduce a levy on sugary beverages starting in 2028. This proposed tax is anticipated to generate approximately €450 million annually, with the funds earmarked specifically for the Statutory Health Insurance rather than entering the general treasury. It is noted that the CDU party caucus previously rejected a sugar tax by a majority, and there are also reports suggesting increases in alcohol and tobacco taxes.
Regarding the national finances, the total federal budget is projected to reach €543.3 billion in 2027, expanding to €586.9 billion in 2028, €588.9 billion in 2029, and €625.1 billion in 2030.
A particularly influential factor shaping these figures is the increase in defense spending. The defense budget is expected to be €105.8 billion in 2027, representing a significant 75 percent increase compared to the preceding year of 2025. The Ministry estimates future defense expenditures to be €149.9 billion in 2028, €158.9 billion in 2029, and €179.9 billion in 2030. Even accounting for this massive defense allocation, the remaining budget funds for 2030 would only be marginally (about two percent) higher than those projected for 2025.
Furthermore, interest expenditures are projected to rise sharply. After being at €29.9 billion in 2025 and a planned €30.3 billion in 2026, expenses are set to grow to €42.7 billion in 2027, and are expected to more than double by 2030, reaching €78.7 billion.
These figures are supported by anticipated increases in federal revenues. Revenues are forecast at €494.9 billion in 2025, rising to €524.5 billion in 2026 and €543.3 billion in 2027. Subsequent years are projected at €586.9 billion for 2028, €588.9 billion for 2029, and €625.1 billion for 2030.
Conversely, the government also forecasts a sharp increase in net borrowing requirements. Net borrowing was €66.9 billion in 2025, and is predicted to rise to €98 billion in 2026, €110.8 billion in 2027, €134.9 billion in 2028, and potentially €137.1 billion in 2029. For 2030, the Ministry plans for a net borrowing of €152.7 billion-a figure more than double that recorded in 2025.
According to the Ministry of Finance, the government’s general policy priorities are expected to remain largely stable: focusing on growth investments, structural reforms to enhance competitiveness, and general budget consolidation.
The schedule for the 2027 budget outline includes a cabinet decision on July 6. The initial reading is scheduled for the Bundestag from September 7 to 11, followed by a vote in the Bundesrat on September 25. The cleanup session occurs on November 12, and the second budget week in the Bundestag is planned for November 23 to 27. The final adoption of the budget is slated for the Bundesrat on December 18.