The federal budget for the current year is not yet dry. The reason for the delay is a ruling by the Federal Constitutional Court.
The Bundestag’s Budget Committee is meeting today for a crucial meeting on planned cuts in the 2024 federal budget. There could still be changes compared to the Finance Ministry’s proposal. The so-called cleanup meeting could last until late in the evening.
Meeting under the impression of the budget verdict
As a result of a ruling by the Federal Constitutional Court, the federal government must plug billions in holes in the 2024 budget and in the climate and transformation fund. The fund will finance future investments primarily in climate protection.
After the verdict in November, the Budget Committee decided not to give final discussions on the 2024 budget. According to the current submission from the Ministry of Finance for the adjustment meeting, cuts are planned in many places, especially in the climate and transformation fund. The 2024 federal budget is scheduled to be decided in the Bundestag during the week of the session at the end of January.
The Union parliamentary group’s chief budget officer, Christian Haase, criticized: “The entire budget process sets negative standards in a form that has never been seen before.” Four adjustment templates, the last of which came one day before the adjustment meeting, together with around 1,000 changes including coalition proposals, show the entire absurdity. “Nobody can see through it anymore. The whole process is a farce.” The procedure was dubious and disorderly, said Haase. The government and the coalition factions acted “like in a banana republic”.
Associations warn of cuts
Transport associations criticize planned cuts in funding for rail freight transport. “It is disproportionate that three quarters of the savings targets for the Ministry of Transport should come at the expense of the railways,” said Dirk Flege, managing director of the Pro-Rail Alliance.
“We need more space for people and goods on the rails; this is only possible with the digitalization of train operations and unbridled promotion of rail freight transport. If the budget holders do not make improvements, it would be fatal for the federal government’s climate goals.”
There is also criticism that, according to the Ministry of Finance’s proposal, a funding program for bicycle parking garages at train stations should be abolished and that money for the expansion of cycle paths in the municipalities should be saved. The en2x association complained that numerous projects to ramp up the market for renewable fuels were in danger of falling victim to a “financial cut-off”.
The One organization and other associations criticized the fact that, according to the federal government’s plans, development cooperation should be reduced by a total of almost two billion euros compared to 2023. Germany is in danger of breaking its promise to invest 0.7 percent of its economic power in combating extreme poverty and preventable diseases, it said.
Controversial cuts among farmers
The planned and highly controversial gradual abolition of tax relief for agricultural diesel, as well as a planned higher ticket tax on passenger flights, are part of the budget financing law. The Budget Committee is also discussing this.
At the first reading of the law on Wednesday evening, Federal Finance Minister Christian Lindner (FDP) defended the plans for agricultural diesel. “If government tasks and government spending are being negotiated again, then it is inevitable that changes and restrictions will also be made,” said Lindner.
