BERLIN (MNI) – Germany aims to lower federal net new borrowing next
year to E31.4 billion, helped by a stronger tax revenue outlook,
according to a Finance Ministry draft of the 2012 budget bill and the
medium-term fiscal outlook obtained by Market News International on
Thursday.
For 2013, the ministry draft targets federal net new borrowing of
E22.9 billion, for 2014 E15.7 billion and for 2015 E12.8 billion.
Federal expenditures are tabled at E304.1 billion in 2012, E305.8
billion in 2013, E304.2 billion in 2014 and E308.8 billion in 2015.
Federal tax revenue is projected at E243.0 billion in 2012, E252.9
billion in 2013, E261.4 billion in 2014 and E269.8 billion in 2015.
Other revenue is seen at E29.7 billion in 2012, E30.1 billion in 2013,
E27.1 billion in 2014 and E26.2 billion in 2015. This includes, for
example, proceeds from highway tolls, distributed dividends and the
Bundesbank profit.
The budget projections are based on the expectation of average
annual GDP growth of 1.6% though 2015
In its draft the ministry also announced that it plans next year a
trial introduction of inflation-linked, non-yielding Schatz notes. The
paper is aimed at private investors. The ministry aims to mobilise
“ethically orientated savings capital” to finance projects of the
ministry for economic cooperation and development.
The ministry draft is still subject to deliberations in the
government cabinet and subsequently in parliament.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
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