German cabinet votes in favor of 2021 draft budget

Wednesday, 23. September 2020 11:20

The cabinet of German Chancellor Angela Merkel approved a draft budget for 2021, DPA reported on Wednesday. The draft budget includes additional spending for climate-linked economic development and infrastructure. Coronavirus aid is also a part of the draft. However, overall expenditures were slashed by around 20% compared to the previous year due to lower tax revenues.

The budget, which foresees debt of over €96 billion and temporarily scraps the constitution's debt brake which limits structural deficits to 0.35% of Germany's gross domestic product (GDP).

The German government is planning on returning to compliance with the debt brake as of 2022.

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