Decision in parliament

Germany finally has a budget for 2024

The traffic light coalition has pushed through its budget.

(Bild: APA/AFP/John MACDOUGALL)

After a long struggle and a two-month delay, the Bundestag in Berlin has passed a federal budget for 2024. It includes expenditure of 476.8 billion euros - and new loans of around 39 billion euros for the time being. The withdrawal of tax relief on agricultural diesel, against which farmers had protested nationwide, is also part of the budget law.

The Federal Council is also expected to give the green light for the budget later today. The federal budget for 2024 posed a particular challenge for the traffic light coalition. Following the ruling of the Federal Constitutional Court, billions of euros suddenly had to be plugged in the core budget and in the climate and transformation fund shortly before the end of the year. 

The coalition partners Robert Habeck (Greens), Olaf Scholz (SPD) and Christian Lindner (FDP) plugged the budget holes and pushed through an austerity program.

(Bild: AFP/Odd ANDERSEN)

The SPD, Greens and FDP agreed on an austerity program that includes a higher ticket tax for passenger flights and the gradual abolition of tax benefits for agricultural diesel for farmers. These measures will be implemented in a separate law - which, however, still has to pass the Bundesrat.

Will the debt brake be adhered to for the first time?
If this remains the case, the debt brake would be adhered to for the first time since the outbreak of the coronavirus pandemic, as the provision in the Basic Law allows a certain amount of leeway in the event of poor economic expectations.