Money affairs - The budget status is being addressed by the parliament of Berlin.
The budget set last year allocates 39.3 billion euros for 2024 and 40.5 billion euros for 2025. These expenditures are higher than they've ever been. The government's aim is to trim down the ballooning budget, which grew substantially during the Coronavirus pandemic, in the long run.
As a result, 1.75 billion euros need to be slashed from this year's budget, as coalition leaders have just granted a comprehensive list of cost-cutting measures. For 2025, the reserved reduction - the overall amount of savings planned in the budget - is a whopping two billion euros, and there's a chance that even more savings will be necessary if tax revenue drops. The method by which these savings will be achieved remains uncertain.
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In light of the budgetary situation, the House of Representatives in Berlin is closely scrutinizing finances to address the growing expenditures. To manage this fiscal challenge, household-level cutbacks are being considered, in addition to trimming down government spending.
