Bundestag Highlights of the Current Week
Germany's 2024 Federal Budget: Navigating Challenges and Priorities
The German government is preparing for a significant year ahead, with the 2024 federal budget reflecting a delicate balance between urgent needs and constitutional financial rules. The budget negotiations have been shaped by the Federal Constitutional Court's ruling on November 15, 2023, which imposed strict limits on deficit financing, popularly known as the debt brake.
One of the key areas of focus is the nationwide justice cloud, an initiative aimed at enabling communication and data exchange between justice and authorities. The Federal Ministry of Justice is examining the implementation of this project to streamline operations and improve efficiency.
Another significant area is the feminist development policy, with the UN Women program receiving a record sum of 20 million euros in 2024. The budget for the Federal Ministry of the Interior and for Heimat (BMI) is well-positioned to meet current challenges, with 1,000 new staff positions created for the Federal Police.
The Federal Employment Agency (BA) will continue to be responsible for career guidance for those under 25 and will be further developed into an agency for work and qualification. The total budget for benefits for integration into work and for the administrative costs of job centers has remained at the same level as 2023.
The health budget amounts to 16.7 billion euros. Over 100 million euros are now available for research projects on long COVID over the next five years. The Federal Government has earmarked six million euros for political foundations for their work in Russia.
Climate and sustainability are also high on the agenda. The Federal Government is increasing the funding for climate-compatible social housing to 3.15 billion euros. Additional funds are available for the core projects of administrative digitization (eID) and register modernization. The program "Climate-friendly new construction in the low-price segment - residential buildings with small to medium-sized units" (KNN) will receive one billion euros for the next two years.
Defense spending will account for 2.1 percent of gross domestic product in 2024, with funds being invested in maintaining materials and clothing, and important equipment projects such as the F-35, personal protective equipment for soldiers, and the Arrow 3 missile defense system.
In terms of social welfare, for children born on or after April 1, 2024, the income threshold for couples and single parents will decrease to €200,000 in taxable income. For the child supplement, which has been increased to up to €250 per child as an interim step towards a poverty-proof child basic security, almost 2.3 billion euros is provided in 2024.
The budget for the Federal Ministry for Economic Cooperation and Development (BMZ) is decreasing compared to the previous year and amounts to 11.27 billion euros. To further implement the skilled workers immigration act, 28 new positions are being created in the visa department at the Federal Foreign Office (BfAA).
The budget reformed parental leave and sharpened it as a tool for equal opportunities, with parents able to receive basic parental leave for a maximum of one month together starting April 1, 2024. For planning and implementation costs for the introduction of the socially central child basic security, 100 million euros is provided.
In addition, the government is increasing the equity capital of Deutsche Bahn AG by an additional 12.8 billion euros by 2027. The budget for the most important funding instrument of federal youth policy, the Children and Youth Plan (KJP), will increase by 4.5 million euros.
Aid to Ukraine will be doubled from four to eight billion euros in 2024, making Germany the second-largest supporter of Ukraine with a total of 19.9 billion euros. The Mercator Institute for China Studies (MERICS) will receive 500,000 euros in support from the Federal Government to further strengthen its China expertise.
The federal budget for 2024 is planned at 476.81 billion euros, which is 3.4 percent more than in 2023, with the new debt being 39.03 billion euros. The budget for the Federal Office for Migration and Refugees (BAMF) is creating 343 new positions to implement decisions of the conference of state prime ministers with the federal chancellor.
Lastly, €25 million will be available for the independent asylum procedure advisory service (AVB) in 2024. The ruling made it no longer possible to suspend the debt brake for one year and use the additional funds to finance crisis expenses in subsequent years. This has been described as Germany facing a "serious budget crisis" rather than a mere debt crisis, triggered by the court’s ruling on the debt brake.
In conclusion, the 2024 federal budget reflects a delicate balance between urgent needs and constitutional financial rules, with the debt brake ruling significantly affecting the budget negotiations and the handling of key funds like the Climate and Transformation Fund (KTF), the Economic and Stabilization Fund (WSF), and the 2021 Reconstruction Aid Fund.
Sports coverage will not be directly affected by the 2024 Federal Budget, as it falls under a different ministry's jurisdiction. However, the General-news section might delve into the political implications of the budget on various sectors, including potential impact on funding for sports facilities or initiatives promoted by political entities. Policymakers in the field of politics and general news might discuss the challenges duty-bearers face in allocating resources, given the strict debt brake and constitutional financial rules, and how it may affect various sectors such as sports indirectly.
