The original 2024 budget caused discussions and criticism. The traffic light government has now agreed to ease the austerity measures.
Berlin – As soon as the budget for the recently begun year 2024 was finalized after long debates, it was overturned again due to discussions and criticism. The austerity measures among farmers touted by Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) were particularly a topic of discussion.
The traffic light coalition was not only criticized by farmers, but the budget was also questioned from within its own ranks. There was vigorous debate for three weeks. Now Scholz, Lindner and Habeck have identified a new timetable for the savings plans, like this Editorial network Germany (rnd) has reported.
Budget 2024: Traffic light clarifies plans for Deutsche Bahn and plastic tax
One change in the budget concerns the plastic tax. Until now, the plastic taxes paid to the European Union have been paid for with tax revenue. This should end from 2025: those responsible, i.e. plastic producers, should then pay the costs. Government spokesman Steffen Hebestreit explains that this is necessary in order to have more time for an efficient solution.
The traffic light has now also explained the plans for Deutsche Bahn AG. Since they no longer have any money from the climate– and transformation funds, it is planned that the federal government will increase the railway's equity by 20 billion euros by 2029. Equity increases of 5.5 billion euros are therefore scheduled for 2024 and 2025. In addition, according to Hebestreit, investment proceeds should also be used. In addition to the design, a few things still need to be clarified: scope, time period and company.
Traffic light government gives in to austerity measures: cuts in the agricultural sector
After criticism from their own ranks and the farmers' protests, Scholz, Habeck and Lindner are making concessions for the 2024 budget, especially in the agricultural sector. The traffic light waives the abolition of the vehicle tax relief amounting to 500 million euros for forestry and agricultural vehicles. Government spokesman Hebestreit explains the change by saying that it prevents “sometimes considerable bureaucratic effort” for the companies affected by it.
The abolition of agricultural diesel remains a setback for agriculture. But there is a change here too, because the abolition is now to take place gradually. In 2024, the tax advantage will be reduced by 40 percent and then by 30 percent in 2025 and 2026.
Budget 2024: This is what happens now
By easing the austerity measures, there will be a change for the 2025 budget, because it will not be reduced by 17 billion euros, as previously planned, but only by 14.5 billion euros. According to the traffic light government's plans, the resulting gap of 2.5 billion euros should be closed through further savings. For example, the Ministry of Agriculture must save 100 million euros elsewhere and income from the tender for offshore wind turbines should no longer be used for specific purposes but should instead be included in the general budget.
The budget committee is scheduled to meet in mid-January. The resolution is already planned for the end of January, so that the Federal Council could complete the legislative process in a meeting on February 2nd. Until then, the provisional budget management applies. (Denise Dörries)
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