“We are mastering the crisis, but we are not neglecting this country’s future tasks,” stressed Finance Minister Christian Lindner (FDP). For the first time in three exceptional years, the debt brake is complied with in its budget. Due to poor economic expectations, loans are still allowed.
Lindner spoke of record relief and record investments, the budget policy of Spd Bettina Hagedorn of a budget “that is not only enormous in terms of volume, but also finds the right answers to the needs of the time”. The Christian Democrats especially criticized the fact that the budget for the Bundeswehr will not rise to two percent of economic output, as announced by Chancellor Olaf Scholz. The populist AfD of left and right has generally seen the priorities wrong.
Overall, the German budget for 2023 has a volume of 476.29 billion euros. The large articles deal with the aftermath of the war in Ukraine and high gas, electricity and food prices. These include housing subsidy reform worth billions, a heating cost subsidy for the needy, and tax breaks.
For families particularly affected by high inflation, the family allowance increases to the standard 250 euros per month and child. The previous Hartz IV in support of the long-term unemployed will be replaced by a citizen’s allowance with significantly higher benefit rates and new procedures by the job center towards the unemployed.
Furthermore, 48 million citizens have to pay less taxes. The state forgoes revenue of 18.6 billion euros by offsetting the consequences of inflation on income taxes. In return, it increases the basic allowance, i.e. the income up to which no tax has to be paid. Other benchmarks in the tax rate will also be adjusted. This is meant to compensate for the fact that people have lower purchasing power due to high inflation.
Left-wing housekeeper Gesine Lötzsch accused the semaphore government of anti-social policies. The ordinary increase for the unemployed does not even compensate for inflation, the winners of the crisis would not be asked to pay. Lindner replied: “Social justice is measured by the fact that needy people are not left alone. But social justice also has another component, namely fairness towards those who bring this country with them with their work and pay high taxes and duties”.
The return to the debt brake was particularly important for the finance minister in his first budget, for which he was fully responsible. The bad economic expectations help him, which still allow loans of 45.6 billion euros. Lindner stressed that the federal government shouldn’t brag too much. The general government deficit is huge, not least because the energy price brakes are financed outside the regular budget through a special credit-padded program.
Union housekeeper Helge Braun described it as problematic that no funds were set aside in the budget for problems that were not yet known. “This budget is already stitched to the brim,” she pointed out. Lindner admitted that reserves were nearly depleted. The budget for 2024 will therefore be much more difficult than this. “So we have no alternative: we must remain courageous,” she stressed.
