Federal Cabinet decides draft budget 2025
For the coming year, according to the cabinet proposal, expenditures of 480.6 billion Euro and a new borrowing of 43.8 billion Euro are planned. These provisions would barely keep the debt brake requirements, but there are some harsh cuts. Moreover, there are initially still billions of gaps in the Budget, which are supposed to be closed in the budget implementation.
In connection with the Budget proposal for the coming year, according to government sources, the government also decided on an initiative for more growth and a budget accompaniment law. Additionally, the cabinet reportedly approved the draft for a supplementary budget 2024 and the financial plan for the years up to 2028.
SPD Finance Minister Dennis Rohde emphasized after the cabinet decision that "there is no austerity budgeting" with these decisions. "We invest in secure and modern jobs, ensure internal and external security, and all this is achieved without cuts in social cohesion in our country," he further highlighted. Green Finance Minister Sven-Christian Kindler, however, called for additional contributions for "social cohesion, more climate protection, the fight against hunger and poverty worldwide" during the further parliamentary proceedings.
In the context of the budget planning for 2025, the Free Democratic Party (FDP) led by Christian Lindner has suggested significant reductions in household expenditures for education. Despite FDP's proposals, the Federal Cabinet's initial budget draft shows substantial deficits, which need to be addressed in the budget implementation period. In Berlin, representatives from various political parties are discussions the 2025 budget proposal, aiming to strike a balance between economic growth and social welfare, with a particular focus on social cohesion and climate protection.
