According to insiders, the federal government wants to significantly reduce new debt from 2023 and, for the first time since 2019, comply with the debt brake in the Basic Law. Finance Minister Christian Lindner (FDP) is planning net new debt of 17.2 billion euros in the draft budget for 2023, according to circles in his ministry on Wednesday.
“Despite significant additional burdens, compliance with the regular upper limits of the debt rule has been achieved,” it said.
“By complying with the debt brake, the inflationary pressure will also be dampened.” The upper limit will also be observed in the financial planning up to 2026.
This should be made possible by the phasing out of corona-related expenses, but also thanks to higher tax revenues and greater withdrawals from reserves.
The cabinet is due to approve the draft budget on Friday. It will be passed in the Bundestag in November.
The planning is based on the government’s spring projection from April, which assumes economic growth of 2.2 percent for 2022 and 2.5 percent for 2023. “The forecast is subject to high uncertainties,” the ministry said, referring to energy prices, war and supply chain disruptions.
