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[POLITICS] · Germany · 16 sources

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Germany introduces 2027 budget draft with tax hikes and spending cuts

The German government has introduced its 2027 federal budget draft to the Bundestag, proposing total expenditures of 555.4 billion euros. Finance Minister Lars Klingbeil presented the plan, which aims to close a multi-billion euro deficit through a combination of tax increases, spending cuts, and administrative streamlining. The total new debt, including credits for defense and special funds, is expected to exceed 200 billion euros.

Key fiscal measures include planned increases in tobacco and alcohol taxes, as well as the introduction of new taxes such as a sugar tax and a plastic tax. Additionally, the budget proposes reforms to the income tax system and reductions in certain social benefits, such as shortening the duration of the basic parental allowance from 14 to 12 months.

While the government aims for fiscal consolidation, analysis from ZEW Mannheim and WWF Deutschland indicates that future-oriented spending within the core budget has reached its lowest level since 2018. Much of the current investment in areas like climate protection and education is being funded through temporary special funds rather than the regular core budget.

Entities

Bundestag · Federal Ministry of Finance · German Bundestag · Germany · Lars Klingbeil · WWF Deutschland · ZEW Mannheim

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Bremen verschärft Rauchverbot [netzwerk-rauchen.de]
about 9 hours ago