Germany: Germany's Finance Minister Lars Klingbeil on Tuesday outlined the 2027 federal budget draft and the government's financial plan through 2030 before the Budget Committee of the Parliament, following the Federal Cabinet's approval of the proposal.
According to Qatar News Agency, the parliamentary statement said the budget draft contemplates federal spending of pound 555.4 billion in 2027, an increase of pound 30.9 billion, or 5.9 percent, compared with the 2026 budget.
The statement added that the draft allocates pound 50 billion for investments, compared with pound 47.9 billion in 2026, while debt-interest payments are poised to rise to pound 41.9 billion, up pound 11.6 billion from the previous year due to higher borrowing costs.
The German Parliament clarified that the Labor and Social Affairs sector receives the largest allocation in the budget, totaling pound 201.5 billion, compared with pound 197.3 billion in 2026.
The defense sector ranks second, with its allocations rising to pound 109.7 billion, compared with pound 82.7 billion the previous year, as part of the government's plan to bolster defense capabilities and fulfill its commitments within NATO.
The Transport Ministry ranks third, with allocations totaling pound 26.4 billion, compared with pound 27.9 billion in 2026.
The budget draft indicated that federal revenues would reach pound 555.4 billion, achieving balance with total spending, while tax revenues are estimated at approximately pound 394.7 billion, an increase of pound 7.5 billion compared with 2026.
Meanwhile, the government plans to raise net borrowing under the core budget to pound 118.7 billion in 2027, an increase of pound 20.7 billion from the previous year.
The draft stated that the government will fully exhaust the constitutionally permitted ceiling for ordinary borrowing, amounting to pound 33.4 billion, while an additional pound 85.4 billion will be allocated to finance defense and security expenditures, based on the constitutional exception granted for these areas.
The government also expects spending growth to continue in subsequent years, reaching pound 588.2 billion in 2028, pound 597.8 billion in 2029, and pound 635.4 billion in 2030.