Supplementary Budget 2024 Referred Back to Committee
Berlin, November 13, 2024 – The Supplementary Budget Act 2024, which was passed by the Bundestag on Thursday, has been referred back to the Committee on Finance. The decision was made by the Bundesrat (upper house of parliament) on Friday in a vote of 35 to 22, with seven abstentions.
The main reason for the referral is the concern among Bundesrat members that the supplementary budget is not in line with the debt brake rules enshrined in the German constitution. The debt brake requires the federal government to balance its budget by 2023 at the latest.
The supplementary budget, however, foresees additional spending of €60 billion, which would increase the federal deficit to €90 billion in 2024. This is significantly higher than the €35 billion deficit that was originally planned for 2024.
The Bundesrat argues that the supplementary budget is therefore not sustainable and could jeopardize the attainment of the debt brake target. The committee will now have to examine the budget in more detail and make recommendations on how to reduce spending or increase revenue.
The referral of the supplementary budget back to committee is a setback for the federal government, which had hoped to have the budget passed before the end of the year. The government now has until March 31, 2025, to reach an agreement with the Bundesrat on a revised budget.
If the government and the Bundesrat cannot reach an agreement, the supplementary budget will be rejected. This would be a major political defeat for the government and could lead to a loss of confidence in the chancellor.
It is unclear at this stage whether the government will be able to reach an agreement with the Bundesrat on a revised budget. The Bundesrat has made it clear that it will not support any budget that violates the debt brake rules. The government, on the other hand, is determined to pass a supplementary budget that will provide additional funding for important programs and projects.
The negotiations between the government and the Bundesrat are likely to be difficult and protracted. It is possible that the supplementary budget will not be passed until after the next federal election in September 2025.
Nachtragshaushaltsgesetz 2024 zurück in den Ausschuss überwiesen
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