Germany: House Passes 2012 Budget; Fed Net Borrowing E26.1 Bn

BERLIN (MNI) – Germany’s lower house of parliament, the Bundestag,
on Friday passed the 2012 budget bill which foresees federal net new
borrowing of E26.1 billion, up from the roughly E22 billion the Finance
Ministry expects this year.

The 2012 budget bill targets federal spending next year of E306.2
billion. Federal tax revenue is estimated at E249.2 billion. Other
income is projected at E30.9 billion. This includes, for example,
proceeds from highway tolls, distributed dividends and the Bundesbank
profit.

The Bundesrat, the upper house of parliament representing the 16
states, will vote on the bill next month. Chancellor Angela Merkel’s
CDU/CSU-FDP coalition does not control a majority there. The Bundesrat,
however, can only delay the bill, not block it indefinitely.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: MT$$$$,M$G$$$,MFX$$$,M$X$$$,MFGBU$,MGX$$$]