German gov’t mulls €11b extra budget for ’24

The German government is considering a supplementary budget for the current year, which could involve up to 11 billion euros ($11.89 billion) in additional borrowing while adhering to the debt brake, according to government sources on Thursday.

The Ministry of Finance has recently briefed coalition budget politicians on these plans. A government source confirmed that while such a budget is conceivable, no concrete decision has been made yet.

The debt brake rule allows for limited deficit spending of 0.35 per cent of GDP, with more borrowing permitted in economic downturns.

The additional borrowing is seen as feasible due to lower-than-expected economic growth in 2024. A finance ministry spokesperson indicated readiness to act based on tax revenue developments and budget implementation.

Attribution: Bild newspaper, Reuters.