Berlin presents its budgets for 2020, with "deficit zero" and more spending

Berlin presents its budgets for 2020, with "deficit zero" and more spending



The German Council of Ministers approved on Wednesday its project of federal budgets for 2020, which again foresees a "zero deficit" despite raising investment in future and innovation and also social assistance.

The Minister of Finance, Social Democrat Olaf Scholz, presented his accounts at a press conference, which he defined as "reliable" and as a contribution to keep the largest European economy as a "modern" and "innovative" country, as well as for " improve the day to day "of citizenship.

The federal government's expenditure in 2019 will amount to 356,000 million euros, an increase of 2.4% over the previous year, and it is expected that revenues will rise to the same amount, so that no new indebtedness is required.

Berlin highlighted the "record in investments" that supposes the departure of a total of 38,900 million euros for "investments in innovation and in the future", issues ranging from support for the extension of broadband to the commitment to intelligence projects artificial.

The minister stressed that the budget also fulfills the promise of strengthening "social cohesion", with more aid for families, such as the increase of unconditional child support, included in the coalition agreement signed by conservatives and social democrats in March of the year. past.

Scholz also highlighted the increase of the items for defense and international cooperation, with which Germany attends to its "international responsibility", and the increase of funds for the police.

In defense, specifically, a "change of trend" has been operated and in the next year and the following years "notable increases" will be registered, said the minister.

Nevertheless, the United States criticized this week that Germany continues far from its commitment, reached in the scope of NATO, to devote to military spending 2% of gross domestic product (GDP) by 2024.

The German Government expects that this year, the public debt, measured in relation to GDP, will fall below 60% for the first time in many years, once again adhering to the Maastricht criteria.

In this way, said Scholz, Germany would have enough cushion to face a potential external shock, come from the final achievement of the "Brexit" or an upsurge of the trade war.

In addition, the minister's council approved its financial plan for the years 2021, 2022 and 2023, in which it foresees a gradual and moderate increase in revenues, in line with expenses, in such a way that the German government maintains the "zero deficit" "also in those three exercises.

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