Federal budget – that’s how much money the next coalition can distribute

Federal Minister of Finance and SPD candidate for Chancellor Olaf Scholz

The Federal Minister of Finance works with a set of figures that depicts the situation more beautifully than it actually is. Scholz did not even take into account some issues.

(Photo: imago images / photothek)

Berlin Regardless of whether a traffic light or Jamaica government comes into being, one thing is certain: the exploratory team’s wish list is long, regardless of political color games. Very long. Whether tax cuts, basic child benefits or a new mother’s pension – each and every one of these demands costs tens of billions.

However, this is in stark disproportion to the real budget situation. While the coalition negotiations in 2017 were still about whether there were 30 or 50 billion euros to be distributed, the situation is now exactly the opposite: the new government is taking on record debts.

It is true that the budget situation is developing better than feared. Tax revenues have been going surprisingly well so far, one reason why the federal government does not even begin to incur the debts that it originally planned for this year and next.

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