BERLIN (Dow Jones) – The federal government wants to take up new debt in 2011 of EUR 57.5 billion and reduce spending by about 3.8% compared to 2010 . This is what the budget draft for 2011 that the decision by the Cabinet on Wednesday in Berlin , according to the Federal Ministry of Finance ( BMF ) with the medium-term financial planning by 2014. ( Reuters photo 🙂
The structural deficit is estimated for 2011 to EUR 45.8 billion . The draft budget provides for the coming year, expenditure of EUR 307.4 billion from 319.5 billion to EUR in 2010.
For 2010 , the government now expects a net borrowing ( NKA ) of around 65.2 billion compared with EUR 80.2 billion in Budgetsoll still planned EUR. The structural deficit is expected to be this year at EUR 53.2 billion , after had been estimated in the budget and 66.6 billion EUR. "We are already in the year 2010, the 2016 current target of a structural deficit of up to 0.35% of gross domestic product a little closer , "said the Treasury documents relating to the draft.
Federal Finance Minister Wolfgang Schäuble ( CDU ) had already announced in early June in the German Bundestag, the NKA would be lower in 2010 than expected and pointed to the creation of the proceeds from the auction of UMTS revenues and a favorable trend in tax revenue and the labor market. On Tuesday, Schäuble said in a podcast, the deficit would be 60 in 2010 "probably over billion to EUR . In reports, it was said that the NKA could fall this year to around 60 billion EUR. In Berlin, it is expected that the budget policy of the German Bundestag in this case also the NKA planned for 2011 could be reduced to a value of perhaps just over 50 billion EUR.
The plan , according to the draft in 2011 and tax revenues of EUR 221.8 billion to EUR 211.9 billion expected in 2010 and 227.8 billion EUR, which were recorded 2009th Other revenue is estimated at 2011 with EUR 28.1 billion , of which EUR 3 billion Bundesbank profits and privatization proceeds are not scheduled according to data from the BMF. The investment is planned by EUR 27.3 billion .
In 2012, the NKA would then fall under the previous planning at 40.1 billion EUR, 2013 EUR 31.6 billion and 2014 to 24.1 billion EUR. It provides for expenditure of EUR 301 billion in 2012, 2013 and EUR 301 500 000 000 301 100 000 000 EUR 2014th The structural deficit is to fall 2012 to 39 billion EUR, 2013 and EUR 32.1 billion in 2014 to 25.1 billion EUR.
In the draft prepared by Schäuble stressed that the German gross domestic product (GDP ) could grow , given the recent business cycle also stronger than the government previously thought. "Could be a context of positive growth rate in the first quarter and the most recent dynamic development in the industry, from today’s perspective, with continued economic recovery in GDP growth to be higher than in the spring projection of the federal government expects, " they say. Economists have in recent forecasts already significantly higher growth than the government expected this year 1.4% predicted.
The next year , according to the draft budget should " contribute to consumer spending support growth again , " total " would be the forces of growth in domestic demand next year will be significantly stronger than 2010 . "
With the decisions of their budget retreat in early June , the government coalition had created the conditions to reorganize the budget in the coming years and to respect the constitutionally enshrined structurally debt brake. Measures adopted in saving retreat budget cuts in 2011 at EUR 11.2 billion in 2012 to 19.1 billion EUR , 2013 are at 24.7 billion and EUR 2014 for 26.6 billion EUR. It provides for cuts in the social sector as well as including the introduction of an aviation fuel tax and a tax.
" However, there is for the years from 2014 remains to be done , " the government said in the budget draft. One should look for the Budget 2014, with debts to the new rule proposed global saving "in the next few years will be backed by action ". For 2015 and 2016 in the context of budget preparation for next years would further consolidate the structural steps are taken. To meet the debt rule , the structural deficit must be reduced by 2016 according to the Federal Ministry of Finance to below 10 billion EUR.
Federal Minister Rainer Brüderle (FDP ) said the cabinet decision on the budget in 2011 was "the beginning of a new era . " Many years had been spent in Germany too . The international financial and economic crisis have led to significant loss of revenue and expenditure , which would have burdened the federal budget , especially in the years 2009 and 2010. The increase in budget deficit of the federal owing to substantial loss of revenue and expenditure by the financial and economic crisis is , however, was inevitable. "In the meantime , however, shows that the economy takes hold , " stressed Brüderle .
The temporary economic support measures are therefore to drive the budget back in 2011 as planned carefully , and also " will be a first substantial step " made to implement the new debt rule. "The risk of a ‘ stalling ‘ of the recovery is not , because in 2009 fiscal policy measures taken by the Federal Government also have a stabilizing effect in 2011 , he was convinced . After overcoming the crisis, now the recovery of public finances stand in focus. For all the economy to sustainable development of the economy but also require targeted investments in future technologies.
The President of the German Industry and Commerce (DIHK ), Hans Heinrich Mann called Drift , a continuation of the austerity measures . " The decline in net borrowing is no reason to relax efforts to save even a little bit of , "he warned. In the short term it was necessary to concrete, particularly the measures of the austerity package to quickly. In addition, the government must now tackle but also in the coalition agreement set tax reform. In exchange for a gradual reform, simplification and relief at the middle of the abdomen and company tax, the economy is ready to support a further reduction in subsidies.
Web sites: www.bundesfinanzministerium.de
– By Andreas Kissler , Dow Jones Newswires
+49 (0)30 – 2888 4118, andreas.kissler @ dowjones.com
DJG / ank / kth / sh