World Economy

Bundestag Approves $335b Budget

Bundestag Approves $335b BudgetBundestag Approves $335b Budget

Germany’s federal budget for the coming year has been approved by a clear majority in the Bundestag. Despite the ongoing refugee crisis, the country is not planning to take on new debt.

Finance Minister Wolfgang Schauble called on Friday for stable economic and financial policies for 2016, as the Bundestag wrapped up discussions concerning the coming year’s federal budget, DW reported.

“We’ll only be able to solve major challenges if we carry out a solid fiscal policy,” Schauble told the Bundestag.

“Our number one priority in the budget is: Education, research, innovation,” Schauble said, also mentioning the infrastructure investments would be “significantly increased.”

The proposed budget for 2016, which amounts to €316.9 billion ($335.3 billion), passed with a clear majority of 466-114.

In spite of the ongoing refugee crisis, Germany, for the third year in a row, will not take on new debt, thanks to the country’s strong economy and low interest rates.

The announcement was made despite warnings from Germany watchdog the Bundesrechnungshof (Supreme Audit Institution), which criticized a draft of the bill for relying too heavily on rising revenues and the aforementioned low interest rates.

The 2016 budget includes roughly €8 billion in expenditures for refugees, which covers administrative as well as security costs.