The budget promises modest growth in expenditures with a strong focus on necessary savings and a shift of budgets, rather than large-scale new initiatives.
Finance Minister Christian Lindner (FDP) emphasized that tough choices had to be made to comply with Germany’s strict financial rules. He stressed that it is essential not to exceed the maximum debt ceiling.
The 2025 budget includes 445.7 billion euros in expenditures. One notable aspect is the allocation of extra money for Defense and for the construction and maintenance of road and rail infrastructure. Defense receives an additional 1.7 billion euros, a measure that Chancellor Olaf Scholz deems necessary given current geopolitical tensions and NATO obligations.
Regarding the Ministry of Agriculture and Food, led by Cem Ă–zdemir (Greens), a budget of 6.86 billion euros has been allocated. This amount is roughly the same as this year and is mainly intended for the sustainability of the agricultural sector and to support small and medium-sized agricultural businesses transitioning to more environmentally friendly production processes.
With approximately 4.1 billion euros, more than half of the BMEL budget is designated for social agricultural policy expenditures. The subsidy for agricultural accident insurance will also continue as before, with 100 million euros available. Subsidies for transitions in livestock farming remain at a high level and will grow as planned, Ă–zdemir emphasized. A total of 200 million euros will be available for this next year (2024: 150 million euros).
Despite the emphasis on savings and redistribution, criticism of the new budget has not been absent. Opposition parties say the budget lacks vision and misses essential investments in social projects and climate measures. Lindner and his colleagues, however, stressed that the current economic situation leaves little room for ambitious new spending.
Another point of contention within the coalition was the funding of social programs. SPD and Greens pressed for more support for families and low-income groups but ultimately had to settle for only limited increases in these areas. The FDP, which strongly emphasizes budget discipline, did not allow expenditures to rise too far.
The draft budget will be discussed for the first time in the Bundestag in September.