The latest tax estimate intensifies the dispute over the 2025 budget. Nevertheless, Federal Finance Minister Christian Lindner (FDP) expects that the budget will be decided in July. Despite the weakening tax revenues, he emphasized that the forecast is not surprising. "This was to be expected in this order of magnitude. And it has been planned for accordingly," he said on ZDF.
The FDP politician assured that despite the recent forecast, which predicts that the federal government, states, and municipalities will collect significantly less taxes next year than assumed, the budget plan will remain on schedule. The new figures show that in 2024, tax revenue will be 21.9 billion euros less than estimated in the fall.
Lindner made it clear that the budget's focus must be on hard security, economic stimulation, as well as investments in education and technology. "Other things are less important," he stated, thereby indicating a prioritization that leaves less room for social spending.
He also called for a limitation on the increase in social spending and an adjustment of international policy. Chancellor Olaf Scholz (SPD) had also spoken out in favor of spending cuts in the departments at the beginning of the week, which makes Lindner confident that the budget will be decided together in the right way.
SPD Leader Lars Klingbeil rejects the pension cuts proposed by the FDP. "Those who believe that we can shoulder the necessary investments by cutting pensions now should grab a calculator," he said. It is not only politically incorrect, but also mathematically impossible.
Klingbeil emphasized that the tax estimate highlights the challenges for the federal budget. He demanded that everyone be ready to meet each other halfway. The SPD wants to make the country economically strong and modernize it without cutting pensions or skimping on security.
Klingbeil expressed the expectation that cost-cutting measures must not come at the expense of security. "That's why it is correct that Pistorius is demanding significantly more money for the Bundeswehr. And he has my full support." Whether he supports the proposal of the Minister of Defense to exempt security concerns from the debt brake, Klingbeil left open.
The discussion about the budget will intensify in the coming weeks, focusing on the question of priorities and the distribution of funds. However, Lindner remains optimistic that a joint and balanced resolution will be reached.
