Presse- und Informationsamt der Bundesregierung
Federal budget 2020 adopted
No new debts in the future either
A stable financial policy for a modern, forward-looking country - without taking on new debts. This remains
an important concern for the Federal Government for the next few years. The Federal Cabinet has adopted the
government draft for the federal budget 2020.
Once again, the federal budget comes out with no new debts – for next year and for the whole planning period
to 2023. This shows that the Federal Government is maintaining its solid and measured budget policy. Spending
of EUR 359.9 billion is planned for next year – one per cent more than 2019. By 2023 spending is set to rise
to EUR 375.7 billion.
What are the Federal Government's focus areas?
Although the German economy continues to grow as forecast, growth is slower than in previous years. This is
impacting tax revenues and therefore it is important to plan ahead and set the right priorities for the
future. The aim is for people across Germany to be able to share in the country's economic success.
Social cohesion and investment for a modern, forward-looking country – these are the goals the Federal
Government is working towards in its budget planning. Education and research, infrastructure and
digitalisation are particularly important in this respect.
The Federal Government will also strengthen its climate protection efforts
greenhouse gas emissions. The climate cabinet (Klimakabinett) is currently working on further measures to
this end.
The burden on families is to be eased further
The Federal Government wants to further ease the burden on families and will therefore raise child benefits
and child allowances again in 2021. In addition, the solidarity surcharge will not apply to 90 per cent of
payers in 2021. The federal budget provides for further tax cuts that will enable regional governments
(Länder) and municipal authorities to reduce fees for daycare facilities for children and improve childcare
provision.
The Federal Government is also providing more support for regional governments to build affordable rented
accommodation. And with its ‘Baukindergeld’ (housing grant for families with children), the Federal
Government is also enabling many families to buy property.
To ensure that Germany remains innovative and future-proof, the Federal Government is strengthening the
economy with new targeted stimulus – for example, using the forward-looking technology of artificial
intelligence.
More money is also earmarked for defence and international cooperation so that Germany continues to uphold
its international responsibility.
The German Bundestag and the German Bundesrat are now holding in-depth consultations on the government
draft. The German Bundestag is likely to adopt the budget in November. The approval of the German Bundesrat
is not required, but it can state its opinion on it. Find out here
how the federal budget is drawn up.
Wednesday, 26. June 2019