BERLIN (MNI) – Germany’s Bundesrat, the upper house of parliament
that represents the country’s 16 states, will pass the 2010 federal
budget bill on Friday, a senior state government official said Thursday,
speaking under condition of anonymity.
The delegates of the 16 German states traditionally get together
ahead of each Bundesrat session and tell each other how they will vote
on various bills.
Technically, the Bundesrat will vote not to approve the bill but on
a motion to block it. It will vote against that motion, thus effectively
approving it, the official said.
The 2010 federal budget bill foresees a rise in federal net new
borrowing to E80.2 billion, from E34.1 billion last year. The Bundestag,
the lower house of parliament, already approved the budget last Friday.
The marked rise in federal net new borrowing this year is due
mainly to lower tax revenue and higher unemployment-related spending
caused by the sharp economic downturn.
On top of the E80.2 billion borrowing foreseen in the 2010 budget,
the government projects an additional federal net new borrowing need of
E14.5 billion for its special funds to support financial institutions
and stabilize the economy. These funds are administered outside the
regular budget. The government made the projection in December when the
cabinet adopted the budget bill.
In 2009, the federal government borrowed E32.7 billion for its
special funds, in addition to the E34.1 billion in net new borrowing for
the regular federal budget.
The 2010 budget bill foresees federal spending of E319.5 billion.
Federal tax revenue in 2010 is estimated at E211.9 billion. Other income
is projected at E27.4 billion. This includes proceeds from highway
tolls, distributed dividends and the Bundesbank’s profit.
Due to the change of government last autumn, the adoption of the
2010 budget bill was delayed until this year.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$G$$$,MFX$$$,M$X$$$,MFGBU$,MGX$$$]
