Due to the Corona-crisis has made the Federal government this year, so a lot of new debt as never before. Finance Minister Olaf Scholz (SPD) is planning a second supplementary budget in the amount of 62.5 billion euros, on Monday, the Finance Ministry said. Thus, the planned borrowing for the current year, rising to 218,5 billion euros. Cabinet and Parliament must approve in the second supplementary budget.
With the money the Foundation should be laid for a broad and sustainable economic recovery, it said from the Ministry. The Federal government cannot take the credit because of the good financial performance of the past year. Last, the debt ratio was, for the first time under the required by the EU ratio of 60 percent of economic output fell.
44 billion euros in new debt in financial crisis
A first supplementary budget of more than 156 billion euros, the Bundestag had already decided at the end of March for the funding of a series of aid packages and, temporarily, the debt brake is exposed to in the basic law. For the stimulus package of the Union and the SPD, this should help boost consumption and the economy in the coming months, however, further credit is necessary. The planned measures have a volume of 130 billion euros, or 120 billion of this is attributable to the Federal government. According to Scholz, the majority of falls in this year, about 30 billion relate to the next Federal budget.
part of this package, among other things, a temporary reduction in VAT and a Bonus for families with children. Together with the children’s money you get to the end of the year per child 300 Euro paid. In addition, small and medium-sized enterprises, which are taken from the Corona-crisis can get Bridging loans of a total of 25 billion euros.
repayment 2023
The Dimension of the new debt becomes clear when one compares it with the financial crisis in which the state supported, especially domestic banks. At this time, in the year 2010, the Federal 44 billion euros in new debt at the time was a record.
Scholz plans to repay the largest part of the Corona-debt within 20 years from 2023 back. Economists think the Plan against the Background of low interest rates, but to be over-ambitious. The interest expenditure of the Federal government had declined since the financial crisis, more and more.
