BERLIN (MNI) – Germany’s upper house of parliament, the Bundesrat
representing the 16 states, passed the 2010 federal budget bill, which
foresees an increase in federal net new borrowing to E80.2 billion from
E34.1 billion last year, German TV reported Friday.
The Bundestag, the lower house of parliament, already approved the
bill last Friday.
The marked rise of federal net new borrowing in 2010 is mainly due
to lower tax revenue and higher unemployment-related spending caused by
the sharp economic downturn.
On top of the E80.2 billion borrowing foreseen in the 2010 budget,
the government projects a federal net new borrowing need of E14.5
billion for its special funds to support financial institutions and
stabilize the economy. These funds are administered outside the regular
budget. The government made the projection in December when the cabinet
adopted the budget bill.
In 2009, the federal government borrowed E32.7 billion for its
special funds, in addition to the E34.1 billion in net new borrowing for
the regular federal budget.
The 2010 budget bill projects federal spending of E319.5 billion.
Federal tax revenue in 2010 is estimated at E211.9 billion. Other income
is tabled at E27.4 billion. This includes proceeds from highway tolls,
distributed dividends and the Bundesbank’s profit.
Due to the change of government last autumn, the adoption of the
2010 budget bill was delayed until this year.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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