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Despite Corona, government is investing in education and business


The Bavarian Prime Minister Markus Söder (CSU) comes to the budget exam with a mask.

Sven Hoppe / dpa

Munich

The cabinet had tied down the budget for 2021 in a video link on Tuesday evening. Overall, the budget for the coming year will total 70.2 billion euros. However, Söder emphasized that there would be no additional debts beyond the already planned 20 billion euros to cope with the corona crisis. The state government takes two billion from the reserves, the ministries had to contribute half a billion in savings contributions.

Söder called the budget a solid signal of stability – and yet the necessary accents are being set. The Prime Minister emphasized that the budget should not put the country under anesthesia, but rather be a signal of departure. Finance Minister Albert Füracker (CSU) said the budget was stable and solid “even and especially in times of crisis”.

This year the state parliament approved borrowing of up to 20 billion euros and suspended the debt brake. This sum should now be sufficient for next year – because some of the funds have not yet been exhausted.

From a budgetary point of view, however, the bottom line will be new debt in the new year, including the suspension of the debt brake, because credit authorizations cannot simply be carried over into the new year. In the end, the state parliament has to approve the new budget.

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