The Bundestag approved the federal budget for next year. In line with the debt brake, new loans of 45.6 billion euros are planned.
The Bundestag approved the 2023 budget. In tackling the energy crisis, the federal government will take out about 45 billion euros in loans next year and finance a large number of aids for citizens and the economy. Finance Minister Christian Lindner (FDP) emphasized:
Save help and save investments
For the first time in three exceptional years, the debt brake is applied in its budget. Due to weak economic prospects, loans are still allowed.
Lindner spoke of record relief and record investments, while SPD budget politician Bettina Hagedorn spoke of a budget that was “not only enormous in volume but also had the right answers to the needs of the time.” Above all, the Union criticized that the Bundeswehr budget would not increase to two percent of economic output, as Chancellor Olaf Scholz explained. The Left and the AfD often saw the wrong priorities.
A lot of money against the energy crisis and inflation
Overall, the federal budget for 2023 has a volume of 476.29 billion euros. The big items are related to the consequences of the Ukraine war and the high prices of gas, electricity and food. These include a multi-billion dollar housing aid reform, a subsidy for heating costs for those in need, and a tax cut.
Especially for families suffering from high inflation, the child benefit rises as standard to 250 euros per month and the child. The previous Hartz IV will be replaced by a citizens’ allowance with significantly higher benefits rates and a new approach to the job center to the unemployed.
In addition, 48 million citizens have to pay less taxes. The state is giving up 18.6 billion euros in revenue by offsetting the consequences of inflation in the income tax. In turn, the basic allowance increases, i.e. income for which no taxes have to be paid. Other criteria in the tax rate will also be adjusted. This is to compensate for the fact that people have less purchasing power due to higher inflation.
Federal budget: Leftists miss social justice
Left maid Gesine Lötzsch accused the traffic light government of implementing anti-social policies. The standard rate hike for the unemployed does not even compensate for inflation, the winners of the crisis will not be asked to pay. Lindner replied:
“But there is another dimension of social justice, which is justice against those who move this country with their labor and pay high taxes and fees.”
Unity: Budget “sewn edge”
For the finance minister, the return to the debt brake was particularly important in his first budget, for which he was fully responsible. He is helped by bad economic prospects that still allow 45.6 billion euros in loans. Lindner stressed that the federal government should not boast too much. The general government deficit is huge because energy price brakes are financed outside the normal budget through a special program of credit.
Union housekeeper Helge Braun (CDU) described it as problematic that no money was allocated in the budget for issues that are yet unknown. “This budget is already planted to the brim,” he stressed. Lindner admitted that reserves are nearly depleted. Therefore, the 2024 budget will be much more difficult than that. “So we have no choice: we have to stay brave,” he stressed.
Source: ZDF
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