Thursday, January 12, 2017

Finance: Schäuble wants to dismantle the mountain of debt at least a little bit – THE WORLD

updated: 14:34 PM read | write duration: 3 minutes

Etatplus 2016

source: dpa/AFP/archive

billion surplus solves the debate over tax cuts and new spending.

Staxes lowering, invest more money or debt to pay back? The billion-plus in the Federal budget has triggered a lively debate about the use of money. As Federal Minister of Finance Wolfgang Schäuble (CDU) announced on Thursday, the Federal government, despite the refugee crisis in the year 2016, with a Surplus of EUR 6.2 billion. The Minister argued in favour of the sum to the repayment of debt.

The budget of the Federal government is the third in a row, without taking on new debt and the second with a Surplus, even if this in 2016, was less than in the previous year. The reason for the re Plus the good economic office record employment and more tax revenues and lower spending, according to statistics from the Ministry than planned.

At the same time, the Federal Statistical office published on Thursday, the Numbers for the state’s households overall. The Federal government, Länder, municipalities and social security funds ended the year with a Surplus of 19.2 billion euros, the statisticians said, citing preliminary calculations.

According to the existing rules would have to flow the Surplus in the Federal budget in a reserve of money for expenditure in connection with the refugee crisis. In the pot are already more than twelve billion Euro, and so far, the refugee could be denied expenditure without the handle in this Fund.

in the light of future possible rising interest rates, Schäuble for “more provision for the Future pleaded” with the budget money. “I’m going to propose to the German Bundestag, therefore, the Surplus of 6.2 billion euros for debt repayment,” he explained. The ongoing tax cut debate, it was rejected in the Ministry, as well as “not useful”, such as “greed” in the expenditure.

In the coalition opinions on the use of the money, however, members of the Union group, signalled in principle support for schäuble’s plans. From the CSU, the requirement that tax came from reductions. “We should give back to the citizens again,” said Bavaria’s Finance Minister Markus Söder of the “image”.

The SPD has demanded more investment in education and infrastructure. “It is important that these funds are now used to improve the efficiency of our country,” said SPD parliamentary group Deputy Carsten Schneider. Among a sensible investment, he also expenditure for the improvement of internal security.

the Greens, demanded more investment. “The Surplus must now be used to invest in climate protection, affordable housing and education,” said your budget is a politician, Sven-Christian Kindler.

In the Ministry of Finance met with these proposals, with very little agreement. It has been argued that, for example, in the budget for 2018 is still a hole of around five billion euros stuffed needs to be. In the face of around 1.2 trillion euros of debt of the Federal government in the beginning of the reduction of this debt, at least an important character.

The demands for further investment was rejected with the reference to not lost. Thus, the investment of funds of 1.8 billion euros – for example, for the Expansion of nursery care or for roads and broadband provision had not been consumed.

The left party called for the use of the billions of surplus for free meals in schools and day care centers. With the of your party, proposed a special program for all children in day-care centres and schools could get “a whole school year long-a free hot and healthy lunch,” said party leader Katja Kipping.


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