The German government intends to boost the economy next year with record investments of almost 40 billion euros. "No government has so far spent more on investments than the current one," Finance Minister Olaf Scholz, a member of the center-left Social Democrats (SPD), said on Wednesday. He was speaking after the cabinet approved its budget plans for 2020. The investments should help to stimulate future growth, Scholz said. He was forced to adjust his budget for 2020 downwards due to the gloomy economy and lower additional tax revenues.
The Vice-Chancellor stressed that the budget was intended to strengthen social cohesion in Germany. At the same time, the government wants to ensure that Germany becomes a modern country that is both economically successful and also meets the challenges of climate change.
By far the largest individual budget remains that of Labor Minister Hubertus Heil who has been allocated over 148 billion euros. The second largest budget is that of the defense ministry, which is set to increase by 1.7 billion to 44.9 billion euros.
Following the cabinet decision, the budget will now go to the lower house of parliament, the Bundestag, and the upper house, the Bundesrat, for approval. It is expected to be finally adopted in December.
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