Berlin, May 21 (Eance): The Bundestag’s budget committee has approved the country’s annual budget for 2022, which envisages total spending of 496 billion euros ($523.5 billion) and around 140 billion euros of new debt.
As the German News Agency (Xinhua) reported, the German Bundestag approved the country’s annual budget for 2022 on Friday.
The new borrowing includes a supplementary budget of around 40 billion euros presented at the end of April for “measures directly related to the consequences” of the Russian-Ukrainian conflict, as the Federal Ministry of Finance (BMF) announced.
Chancellor Olaf Scholz earlier this year announced the establishment of a €100 billion special fund for defense and stressed that his country will strive to bring its annual defense spending to 2 percent of GDP.
Due to measures in connection with the Covid 19 epidemic, Europe’s largest economy had already planned new debt of around 100 billion euros before the start of the Ukraine crisis.
In addition, the country’s so-called debt brake was suspended, according to which the federal budget and the state budgets as a whole must be balanced without income from borrowing.
Finance Minister Christian Lindner is a strong advocate of restoring compliance with the debt brake.
“You have to find a way out of the crisis situation,” he said last week. (1 euro = 1.06 dollars)