Financial Plan for 2025

Delay in Approving the Annual Budget: An unexpected obstacle confronts the financial plan for the current year, as the budget committee is compelled to assess it more thoroughly. Consequently, they have taken the appropriate step...

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2025 September 13 . 11:54 PM

1 min read

Financial Plan for 2025

The German Bundestag is set to vote on the 2025 federal budget in the session week from 16 to 19 September. This budget, totalling approximately 502.5 billion euros in expenditures, will potentially bring an end to the financial restrictions that have been affecting the ministries since the beginning of the year.

The current government, a coalition comprising the SPD, Bündnis 90/Die Grünen, and FDP, will be passing the 2025 budget. This coalition, which has been involved in the budget and legislative processes around 2022 and 2025, continues the policies from the foundation laid by the previous coalition. Chancellor Friedrich Merz (CDU) leads the government as of 2025.

The ministries have been operating under a provisional budget, which has significantly restricted their financial leeway. This has impacted their operations and decision-making for the remainder of the year. The provisional budget, a result of the early Bundestag election and the formation of the government, has set a limit on the ministries' spending.

The 2025 budget does not include loans from special funds for the Bundeswehr and infrastructure in its initial expenditure budget. However, when these loans are considered, the expenditure budget includes over 140 billion euros in new debt. The Budget Committee of the Bundestag has already approved a core budget new debt of almost 82 billion euros.

The 2025 budget vote comes after these approvals, marking a significant step towards providing the ministries with a definitive budget, potentially alleviating their financial restrictions. The passing of the 2025 budget is expected to bring stability and clarity to the ministries' financial planning for the coming year.