Friday, July 1, 2016

High tax revenue secure breakeven – FAZ – Frankfurter Allgemeine Zeitung

The federal government raises spending on social affairs and the integration of refugees in the coming year strongly. Thanks to rapidly rising tax revenues they still want to survive at least until 2020 without new debt. The new draft budget by Finance Minister Wolfgang Schäuble (CDU), the Federal Cabinet will decide together with the financial plan for the coming years on Wednesday, provides for total expenditure of 328.7 billion euros before the year 2017th This was reported on Friday from government. Compared to this year’s budget grows by 11.8 billion euros or 3.7 percent.

Dietrich  Creutzburg Author: Dietrich Creutzburg, economics correspondent in Berlin.

But the budget for Social Nahles (SPD) increases according to the design compared to 2016 by almost 9 billion euros or 6.7 percent to 138.6 billion euros. This corresponds to the framework that the government had set in March with the basic parameters of the 2017 budget.

 
     
     
                 
                                 
                                                                             
                                                                                                                                                                               Infographic / The Federal Budget
                 
                     
             
         
     

     

 

Much of the increase is due to overspending in the Hartz IV system and settled there services to integrate refugees. Overall, the government estimates the expenditures for managing immigration and combating the causes of flight of all ministries concerned away with nearly € 19 billion in 2017 and with a total of over 77 billion euros by 2020. ‘/ P>

in addition, there is in the coming year but also extra money to give to the expansion of broadband networks as well as for economic and innovation funding in the area microelectronics and digitization. therefore Economy Minister Sigmar Gabriel (SPD), Minister of Research Johanna Wanka (CDU) and Transport Minister Alexander Dobrindt (CSU) obtained in 2017 even a little more money than it had provided the benchmarks adopted in March. The Transport Minister receives in addition to the previously agreed 2.7 billion euros in the period up to 2020 a further 1.3 billion euros for the broadband infrastructure. In terms of microelectronics came for economic and research department a total of 1.7 billion euros by 2020, added.

The defense budget of Minister Ursula von der Leyen (CDU) is growing according to the draft 2017 to 36.6 billion euros, are almost 7 percent more than in 2016. more money will also Civil and environmental Minister Barbara Hendricks (SPD), led to the strengthening of housing, as well as interior Minister Thomas de Maizière (CDU), who for the internal security of almost 2000 new jobs in the Federal police and other authorities obtained. The budget for education and research grows to 17.6 billion euros; this is 7.1 percent more than in the past. In social budget expenditure as unemployment benefit II beat Beech because soon more refugees arrive in the Job Center after their asylum procedure. In addition, 1.5 billion euros are provided in addition to employment promotion measures. Additional EUR 710 million is intended to provide for vocational language courses and job opportunities ( “one-euro jobs”). Behind the increase in the social budget but are also increasing federal subsidies for pensions. 2015 these were 85.7 billion euros, by 2020 the 100-billion-euro mark is reached. The sum of all social spending federal budget grows by then according to the plan to 187 billion euros, equivalent to 57.2 percent of the total budget. Currently, there are 161 billion euros or 55.1 percent.

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If the new budget is implemented, increase the overall federal spending by 2020 to 349.3 billion euros. However, thanks to the same extent rising revenues that should ensure “black zero” which Germany would comply first time since 2002 the Maastricht Treaty, which permits a total debt of up to 60 percent of gross domestic product. Currently, there are 68 percent. That the new financial plan scope for tax cuts could include, at the present on Friday information was not found. A short-term uncertainty, there is also the fact that the federal government currently being negotiated with the countries through increased participation in their refugee-related expenditures. The decisive round this is scheduled for next Thursday.

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