Lindner perceives no room for implementation of distribution policies and emerging financial desires.
The government is anticipated to rake in slightly extra taxes next year compared to initial estimates. As per the autumn tax projection released on Thursday, the projected earnings for 2025 stand at approximately 700 million euros more than the May forecast.
Christian Lindner, the Federal Finance Minister (FDP), however, asserted that there's no scope for redistributive politics or new spending desires. instead, he emphasized that we need to keep consolidating.
Lindner elaborated on his strategy for the approaching final stages of the negotiations on the 2025 federal budget in the Bundestag. He underscored the need for the government to prioritize its spending and stated that we have now entered the "autumn of decisions" as he put it. Lindner delivered his address via video conferencing during his visit to the USA. He once again highlighted the importance of boosting economic growth to improve the country's financial standing.
Lindner was also adamant about reallocating the 10 billion euros previously earmarked for Intel's chip factory construction in Magdeburg towards budget consolidation. He reiterated that "there's no alternative" in this matter.
According to the Finance Ministry, the boost in the federal government's tax revenue projections is a result of adjustments in EU financial contributions. The revised forecast now expects a decrease of 7.4 billion euros in EU contributions compared to the May forecast. The updated forecast also considers the federal government's growth initiative.
For the federal government, states, and municipalities collectively, there's a projected decline in expected tax revenues of 12.7 billion euros for 2025. The previous forecast for tax revenues has also seen a similar decrease for the ensuing years.
Despite Lindner's emphasis on budget consolidation, some advocates suggest that the government could consider using some of the extra taxes for social welfare programs, but Lindner firmly believes in the importance of other fiscal priorities. The government's increased tax revenue is largely due to adjustments in EU financial contributions, leading to a decrease in expected EU contributions for 2025.
