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Budget crisis 2026: Government breaks promises and plans new debts!
The federal government is planning a budget of 520 billion euros for 2026, criticized by experts for rising debts and administrative costs.
Budget crisis 2026: Government breaks promises and plans new debts!
Politics in Germany is facing a significant upheaval: On Thursday, the federal government will present the budget for 2026, and the numbers are more than worrying. Loud Picture The total volume is said to be 520 billion euros. But a third of it, exactly 174 billion euros, is fresh debt - that's what stands out.
Where does this new debt come from? A large part is financed from so-called “special funds”, which were originally planned for new investments such as road construction. Ironically, the Taxpayers' Association criticizes the government because the special debts are also intended to pay for projects that have already been planned. In total, that's an impressive 55 billion euros that will be reallocated in this way by 2029.
Spending and savings in focus
Another point that keeps coming up in the debate is administrative costs. The federal government plans to cut eight percent of civil servant positions by 2029 and also wants to reduce administrative costs by ten percent. Nevertheless, 8,000 new administrative positions are on the agenda for 2026, which will result in a cost increase of five billion euros compared to 2024. Kind of contradictory, right?
Another problem is the ongoing increase in state subsidies. Almost 80 billion euros are planned for 2026, which is more than the 66 billion euros from the record year 2024. Despite a promise in the coalition agreement to reduce the funding programs, in reality they continue to rise.
Reiner Holznagel, President of the Taxpayers' Association, has mixed feelings about this development. His criticism of the federal government's debt policy is becoming louder. He warns of the risk of rising interest rates and urgently calls for comprehensive austerity measures and reform aimed at making the state apparatus more efficient.
Debt brake and state revenue
This is where the debt brake comes into play. This regulation, which has been anchored in the Basic Law since 2009, aims to limit new debt and protect future generations. Similar to the analysis of the bpb described, it allows new debt to be taken on up to 0.35 percent of gross domestic product (GDP) annually. However, in times of crisis, the government can take on more debt to stimulate demand.
The discussions about the debt brake are more intense than ever. Critics argue that it hinders necessary investments in infrastructure. Proposals for reform include an adjustment that allows interest rates and the quality of infrastructure to be taken into account. The goal remains the same: Prevent politicians from taking out loans that burden future generations.
At a time when government spending on public infrastructure, education and social security needs to increase, well-thought-out financial management is crucial. This is the only way we can regain the trust of citizens and ensure economic stability.