BERLIN (MNI) – The German government cabinet on Wednesday passed
the budget blueprint for 2012 and the medium-term fiscal outlook until
2015.
The draft foresees federal net new borrowing of E31.5 billion next
year, declining to E22.3 billion in 2013, E15.3 billion in 2014 and
E13.3 billion in 2015.
Federal expenditures are tabled at E303.8 billion in 2012, E305.7
billion in 2013, E304.4 billion in 2014 and E309.5 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 E270.5 billion in 2015.
Other revenue is seen at E29.3 billion in 2012, E30.5 billion in
2013, E27.6 billion in 2014 and E25.8 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 GDP growth
of 2.3% this year, 1.8% next year and 1.6% per year for 2013-2015.
For the current year, the ministry still intends to bring federal
net new borrowing below E40 billion, despite lower transfers from the
Bundesbank, Deputy Finance Minister Werner Gatzer said last week.
“We still believe that we can meet that goal,” Gatzer said,
pointing to the improving economic picture. “Several economic research
institutes have revised up their growth forecasts in recent days,” he
observed.
The Bundesbank announced last week that its 2010 profit fell to
E2.2 billion. The government had projected a profit of E3.0 billion in
its 2011 budget. The profit of the central bank flows directly into
government coffers.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
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