Bundestag Budget Passed: Committee Approves Record €560.9 Billion Budget for 2027

The Bundestag Budget Committee approved the federal budget for 2027 on Friday morning, setting a record expenditure of approximately 560.9 billion euros. The planned net borrowing is understood to be nearly 123 billion euros, which represents an increase of about four billion euros compared to the government's original draft. Additionally, credit-financed investments are planned for infrastructure and the Bundeswehr (German Armed Forces), potentially raising total debt to over 200 billion euros.

The reduction of the electricity tax, an initiative included in the coalition agreement, remains undecided. The decision on this matter is expected in the Coalition Committee on Tuesday, as financing has not yet been found. The plastic tax was scrapped after resistance from the economy, while the introduction of the sugar tax has been postponed until 2028.

The Bundestag will definitively vote on the budget during the session week of November 24 to 27. The budget stipulates how much money the ministries may spend in 2027 and which projects will be financed.