In view of the large gaps in the next federal budget, Finance Minister Christian Lindner agrees that the traffic light coalition will make cuts and uncomfortable decisions. “Politicians have to learn again to get by with the money that the citizens generate,” said the FDP politician to the “Rheinische Post”. Each individual expense will now be discussed “on the basis of its justification and its amount”. “Some cherished habits will also have to be put to the test.”
It is important to him that the measures are distributed fairly. “It’s not possible, for example, for commuters and drivers to be burdened unilaterally. What also doesn’t work are tax increases. Because we’re now a country with the highest taxes. And any tricks to incur more debt are out of the question anyway.” It is important to curb spending growth, he said. “The national budget cannot grow faster than the economy.”
The government draft for the 2024 budget is to be approved by the cabinet on June 21 after the tax estimate for May. After that, it’s the turn of the Bundestag, which wants to decide on the budget at the beginning of December.
“Budget gap must be generated through renunciation”
Lindner outlined the dimension of the gap: “As of now, we will have a deficit of 14 to 18 billion euros in the coming year with revenues of 424 billion euros. This budget gap must be generated by doing without.” If you then want to set additional spending priorities, for example in defense or education, then you have to cut even more elsewhere. Tariff increases in the public sector should also be taken into account.
Lindner told the newspaper that the imbalance had nothing to do with the crises of recent years. “In truth, Union-led federal governments have continually introduced new social benefits and subsidies for a decade that were not sustainably funded. The unnaturally low interest rates have masked that.” Now the interest rate level has normalized, instead of four billion euros in interest as in 2021, according to him, it will be 40 billion euros this year.
