Germany’s Budget 2024: Military expenditures to rise, all others to shrink

06.07.2023, Berlin.

After months of intense negotiations, Germany’s coalition government approved next year’s budget on Wednesday, making deep cuts after years of big spending while giving a boost to defense expenditures, The Local informed on July 6.

Europe’s largest economy, which slipped into recession earlier this year due to soaring inflation and rising interest rates, is forecasting spending of €445.7 billion next year compared to €476.3 billion planned for 2023.

Drastic cuts in borrowing are being made, with €16.6 billion planned for 2024, down from €45.6 billion in 2023.

According to the draft budget, the government will leverage one of the special funds that are outside the official budget to ensure that NATO’s 2024 goal of spending 2% GDP on military expenditures is achieved.

Some €19.2 billion will be allocated to the armed forces from a special fund created to recover the cracking Bundeswehr after the outbreak of hostilities in Ukraine. This will supplement the regular defense budget of €51.8 billion, which will thus increase by €1.7 billion.

Parliament will begin discussing the draft budget in September, according to the newspaper.

Source: Rossa Primavera News Agency