For the first time in 46 years the German government will have to deal with a balanced budget without new debt. Before this balanced budget, the Finance Minister Wolfgang Schaeuble wants slightly raising the loans despite the extremely expensive coalition projects. Rather than the initially budgeted new loans to 6.2 billion EUR for 2014 the debt will be increased to 6.5 billion EUR. This became clear from the new draft budget for 2014 and the financial plan, which must be voted on next week’s Council of Ministers.
The zero budget deficit should settle permanently in the Federal budget since 2015. The officials claim that till 2018 the government will have balanced budgets without taking new loans. Originally planned billionths surpluses are no longer possible, due to the estimated 23 billion EUR coalition projects such as pension plans, additional investment in road infrastructure, education and urban planning, as well as to relieve the municipalities and provinces. However, this reduction of the giant debts valued of more than 1.3 trillion EUR only for the Federal Republic again postponed for several years.
To finance the additional costs Schaeuble will use not only the initially expected surpluses, but also reserves in the budget. The measures adopted by the two coalition partners provide high costs, which will require in future the federal government to adopt additional efforts.
This year Schaeuble provides costs at amount of 298.5 billion EUR, while in 2018 the costs are valued at 327.2 billion EUR. The investment will increase from 25.8 billion EUR this year to 27 billion EUR in 2018.
With the planned for 2014 new debt the Finance Minister Schaeuble will achieve the goal of a structurally balanced budget without taking into account the economic and off effects. The maximum possible debt will amount to 8.5 billion EUR.
The budget for 2014 had to be revised after the change of the government last fall. On Wednesday, the government will get a decision of the basic parameters for the budget plan of 2015. The budget for this year is expected to be completely approved before the summer vacation. Until then the financial ministry is working over the preliminary financial plan, which will also lead to savings because it puts the border of spendings the level of the last year.