Households in rapid succession: The current state of affairs

Germany's 2025 Budget Approach and the Planned 2026 Budget

The first debate for the 2026 budget is set for the last week of September, as the German government prepares to outline its financial plans for the coming year. The 2025 budget, which is set to be approved in the session week from 16 to 19 September, has already experienced some adjustments.

The budget for 2025, which includes additional funds for the Technical Relief Agency (THW) and the UN's World Food Programme, is now approximately 460 million euros less than originally planned by the government. This reduction in expenditure is likely to be a topic of debate in the Bundestag.

The budget meeting, which took place significantly shorter than in previous years, at eleven hours, was marked by little controversy, according to Union budget officer Christian Haase. The coalition budget officers did not mention any major projects where savings were made. However, the opposition has criticised the lack of transparency in the distribution of funds.

The budget for 2026 has already been decided in the cabinet and will go directly to the Bundestag after the vote on the 2025 budget. Finance Minister Lars Klingbeil (SPD) is planning for 2026 with higher expenditures, specifically 520.5 billion euros and higher debts. Cuts are once again planned for development expenditures, making it a topic of debate in the Bundestag.

Meanwhile, the state secretaries of the ministries are expected to meet as early as September to work on the 2027 budget. The budget for 2027 shows massive financing gaps, with around 34 billion euros missing. If the budget for 2025 is approved, it will only be valid for three months, as more than two-thirds of the year will have passed.

One positive note for the future is the allocation of one billion euros over the next four years from the debt-financed special fund for infrastructure, which will flow into the renovation of sports facilities in municipalities.

The opposition has accused the MPs of Union and SPD of being too lenient with their ministers. The coalition, however, has already adopted the draft budget for the year 2026 before the Bundestag finalized the 2025 budget. The 2025 budget is now ready for voting in the Bundestag.

As the debate on the 2026 budget unfolds, the focus will be on balancing the need for higher expenditures with the need for fiscal responsibility, and ensuring transparency and accountability in the distribution of funds.