You are here: Home » International » News » Others
Business Standard

Germany backs 40 bn euro supplementary budget to fund Ukraine costs

The draft supplementary budget envisages new borrowing will take Germany's net debt in 2022 to 138.94 billion euros with the total government expenditure estimated at 495.8 billion euros

Topics
Germany | Russia Ukraine Conflict | Europe economy

Reuters 

Germany

Germany's parliamentary budget committee approved plans on Friday to take out almost 40 billion euros ($42.3 billion) in additional debt this year to fund costs stemming from the fallout of the war in Ukraine.

The draft supplementary budget envisages new borrowing will take Germany's net debt in 2022 to 138.94 billion euros with the total government expenditure estimated at 495.8 billion euros, according to the Bundestag budget committee.

Following overnight talks, the committee agreed the package to help finance a second energy relief package for consumers, business aid and higher costs for the integration of refugees from Ukraine.

temporarily suspended constitutional limits on new debt to finance unprecedented fiscal support for the economy during the coronavirus pandemic, borrowing 130 billion euros in 2020 and a record 215 billion euros last year.

From 2023, Germany's ruling coalition of Scholz's Social Democrats (SPD), the Free Democrats (FDP) and Greens aims to return to the debt brake rule of the constitution that limits new borrowing to a tiny fraction of economic output.

In addition to the supplementary budget, has plans for 100 billion euros in credit authorisations for a special fund for the military.

($1 = 0.9455 euros)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, May 20 2022. 13:48 IST
RECOMMENDED FOR YOU
.