Germany’s coalition government has decided to take on high public debt in its 2021 budget to battle against the economic impacts of the COVID-19 pandemic.
Germany’s coalition government has decided to take on high public debt in its 2021 budget to battle against the economic impacts of the COVID-19 pandemic.
The parliamentary Budget Committee has reported that the planned budget that was foreseen is €180 billion in fresh debt.
The budget computed the expenditure of €498.6 billion, around the same level seen this year.
The amount of debt goes beyond the original drafted budget in September, which is €96,2 billion in fresh debt.
It is also €164.227 billion more than what is permitted in the debt brake of Germany, which parliament will have to excuse for a second time.
The debt is second only to the record of €217.8 billion, which was set this year in July.