Federal cabinet adopts draft supplementary budget for 2015 together with benchmark figures for the 2016 budget and the financial plan up to 2019

By   /  November 30, 2016  /  Comments Off on Federal cabinet adopts draft supplementary budget for 2015 together with benchmark figures for the 2016 budget and the financial plan up to 2019

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MIL OSI – Source: German Ministry of Finance – in English –

Headline: Federal cabinet adopts draft supplementary budget for 2015 together with benchmark figures for the 2016 budget and the financial plan up to 2019

On 18 March 2015, the federal cabinet adopted a number of key budgetary documents including the government bill for the 2015 supplementary budget, the benchmark figures for the 2016 federal budget, and the financial plan for the years up to 2019. It also adopted a draft bill to promote investment by local authorities with inadequate financial resources.

The federal budget is expected to contain no new borrowing in all of the years covered by the financial plan up to 2019. This means that balanced budgets containing no net borrowing – as first achieved with the execution of the 2014 budget – will be achieved on an ongoing basis. The budget leeway that has been gained thanks to the successful fiscal consolidation efforts of recent years will be used primarily to boost public investment.

Commenting on the federal cabinet’s decision, Finance Minister Schäuble stated:

“The benchmark figures decision opens up a new chapter in German budget policy. We are significantly increasing investment without taking on new debt. In this way, we are improving the structure of the budget and making Germany fit for the future.”
Key benchmark figures for the period up to 2019

According to the draft supplementary budget, federal expenditure in 2015 will amount to €302.6 billion. Annual spending will increase at a moderate pace to €334 billion by 2019, the end of the current financial planning period. Government expenditure will increase at an average annual rate of 2.5%, which is lower than the rate of nominal GDP growth.

Expenditure trends are in line with revenue trend forecasts that are based on the medium-term growth projection contained in the government’s 2015 annual economic report. No new borrowing is expected in all of the years covered by the financial planning period up to 2019.
Key benchmark figuresTarget for 2015
Benchmark figures for 2016
Financial plan
2017
2018
2019
– in €bn –
Expenditures
302.6312.5318.9327.0334.0Year-on-year change in %
2.43.32.02.52.1Revenue
302.6312.5318.9327.0334.0Tax revenue
280.0288.1297.0310.2322.0Net borrowing
00000Structural balanceas % of GDP
-0.0-0.1-0.1-0.1-0.0For information purposes:Investment
30,030,931,931,930,9 

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