in view of the gloomier economic situation, black needs to buckle-red coalition in the Federal budget belt-tightening.
the Top priority is to create in the budget in 2020, again a “Black Zero” budget with no new debts, such as on Monday from the Ministry of Finance said. The game is in the budget for additional expenditure to be areas of low. It’s aim is to set the “right priorities” and to strengthen social cohesion in Germany.
Individual ministries should not get to the basic Parameters of the budget as much extra money as requested, such as the Secretary of defense Ursula of the Leyen (CDU) and development Minister Gerd Müller (CSU). The Federal Cabinet wants to decide the basic parameters of the budget on Wednesday. After deliberations in the Bundestag.
The Federal government had lowered its growth forecast for the German economy clearly on a growth of just 1.0 percent. Reason is a slowdown, especially in the world economy, as well as risks about the Brexit. The result of lower growth in tax revenues. The situation could worsen with the new tax estimate in may.
Each Ministry to provide the budget for its contribution, in order to reach a budget without new debt, it said in the Ministry of Finance. In the financial plan to 2023 there is a “consolidation” contribution of 2.5 billion Euro.
Billions of expenditure for the planned basic pension are not shown in the basic Parameters for the budget in the year 2020. There is no bill in front of sun, it was said in the Ministry of Finance. The necessary financial resources for the basic pension could be included in the financial plan starting in 2021. In the case of the basic pension is a Retirement long-standing, but low-contributors above the base backup, i.e., the Hartz IV earn-levels.
Overall, the Finance Minister, Olaf Scholz (SPD) is planning for 2020 with the expenditure of 362,6 billion euros, which is 1.7 percent more than in 2019. The investment of the Federal government to rise moderately to 39.6 billion euros. The more money there is to be for families with small and medium incomes, for example through a higher child allowance. Focuses on the Expansion of digital infrastructure, social housing, transport, and research and development.
For Artificial intelligence are provided in the basic Parameters in addition to 500 million euros. For the planned tax incentives for research and development of Pension had been taken, it said. The expenditure on Internal security set to rise to a record level.
A conflict in the coalition, it is likely to give, especially to the defence budget. More editions of around two billion euros are planned for 2020, Minister von der Leyen had, however, demanded much more. The so-called Nato-ratio – the share of defense expenditure to the gross domestic product – should be in 2020, according to the basic Parameters of 1.37 percent, according to the financial plan decrease until 2023, but at 1.25 percent. You “go to view”, – was stated in the Ministry of Finance. The Federal government had actually issued as a goal for 2024, then 1.5 percent for defense spending. Especially pressure from the US to Germany.
The criticism of development Minister Müller, the budget of departments would be frozen at the level of 2019, was rejected in the Ministry of Finance. All the international commitments could be met.
The Opposition has criticised the financial planning focus. The Green budget of a politician, Sven-Christian Kindler said, the basic parameters for the budget as a poverty certificate. “For tanks and drones, the new billion to be made loose while in the fight against Hunger and international climate protection is being cut.” The investment would be frozen.