Germany to create supplementary budget for 2023
Date
11/26/2023 7:39:14 AM
(MENAFN) The German government, in response to a Constitutional Court ruling that disrupted spending plans, is set to create a supplementary budget for 2023, as announced by Finance Minister Christian Lindner in Berlin on Thursday.
The decision to temporarily suspend the so-called debt brake will enable the government to substantially increase new borrowing for this year. Lindner plans to unveil the supplementary budget for the current year next Wednesday, following consultations with Chancellor Olaf Scholz and Vice Chancellor Robert Habeck, who also serves as Germany's Economy minister.
"There is now new legal clarity on how we have to deal with special funds and emergency loans," Lindner declared. "We will now put expenditure, particularly for the electricity and gas price brakes, on a constitutionally secure footing."
The discussion on the budget for 2024 will only take place once there is a "constitutionally secure situation" for 2023, Lindner added.
This decision by Lindner comes in the aftermath of a Constitutional Court ruling, which deemed the attempt to redirect €60 billion ($65 billion) of unused debt from the COVID pandemic era to a climate fund as unconstitutional.
The court's ruling not only has implications for planned climate investments but also affects the financing of the energy price brake, designed to alleviate the impact of high electricity and gas costs.
In response to the court ruling, the government intends to utilize an exemption from the debt brake this year.
MENAFN26112023000045015839ID1107486641
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.