BERLIN: The German government has adopted the country's 2023 national budget, which projects revenues and expenses of about 445 billion euros (USD463 billion), or 10% less than in 2022.
The largest economy in Europe is attempting to balance its books for the first time since the Covid-19 outbreak began, thus the new budget must adhere to the nation's so-called debt brake, as per reports..
Germany's national budget for 2023 only allocates 17 billion euros for additional debt after taking on nearly 140 billion euros in new debt this year.
Adhering to the debt brake, which demands a balanced budget and was initially implemented under former Chancellor Angela Merkel back in 2009, is of "great importance," said the Minister of Finance Christian Lindner.
In the upcoming years, Germany wants to substantially cut its new borrowing. The government only intends to incur debt from 2024 to 2026 in the range of 12.3 and 13.8 billion euros annually.
According to the Federal Statistical Office (Destatis), Germany's public debt decreased by 992 million euros in the first quarter of 2022 compared to the prior quarter.