Houses under cooperation: Current scenario of three neighboring residences
2025 Budget Approved for Voting in Bundestag
The first debate for the 2026 budget is scheduled for the last week of September, with the Bundestag set to decide on the 2025 budget in the week of 16 to 19 September. The 2025 budget, which provides for expenditures of around 502.5 billion euros, has already been approved in the cabinet and will go directly to the Bundestag for a vote.
The budget for 2025 is approximately 460 million euros less than originally planned by the government, due to various cost-saving measures. These measures include cuts to development expenditures in the 2026 budget and state secretaries of the ministries submitting savings proposals for one percent of their budget.
The federal government is contributing to the funding gaps by compensating for tax losses of the states, expanding the mother's pension earlier, and starting to repay loans from the Corona period. Additionally, over the next four years, one billion euros will be allocated from the debt-financed special fund for infrastructure to renovate sports facilities in municipalities.
The Budget Committee of the Bundestag had its most important meeting on Thursday evening for the reconciliation of the draft budget 2025. The meeting was significantly shorter than in previous years, at eleven hours, with little dispute reported during the meeting. Vice-chancellor Klingbeil has started working on the budget for 2027 months earlier than usual.
The 2025 budget also includes additional funds for the Technical Relief Agency (THW) and an additional 22 million euros for the UN's World Food Programme. However, the opposition has criticized the lack of transparency in the distribution of funds in the 2025 budget.
Looking ahead to the 2026 budget, Finance Minister Lars Klingbeil plans for a budget of 520.5 billion euros and higher debts. The goal of Finance Minister Klingbeil for the 2026 budget is to implement the plans agreed with Defense Minister Boris Pistorius, with related debates in the Bundestag expected to follow the completion of these agreements. The next budget review session for 2026 is expected to last until 12 pm or later, possibly until 3 or 5 am.
Massive funding gaps are already evident in the planning for 2027, with a need for action of 63.8 billion euros for 2028, and a gap of 74 billion euros for 2029. It remains to be seen how the government will address these challenges in the coming years.
