BERLIN-Germany’s annual federal budget for 2020 will increase to an estimated 362 billion euros, according to a draft submitted by a parliament committee on Friday. This presented a total of 1.1% rise and an indication of a balanced budget.
The drafted amount worth 1.7 Billion Euros is higher than the amount proposed by Finance Minister Olaf Scholz.
The center-left Social Democrat who is also a junior partner of Chancellor Angela Merkel deemed it necessary to utilize a reserve allotted for migrants integration in order keep a balanced budget.
The set-aside increased to more than 35 Billion Euros from which 10.6 Billion Euros will be reserved for 2020’s regular budget, according to the draft.
7 Billion Euros were designated for incentives to reduce carbon emissions. This scheme will be executed through building insulation, old heating system replacement, and giving higher subsidies for electric car buyers.
The proposed budget must be passed by all of the members of the lower house of parliament, the Bundestag as the final decision is set to be released at the end of the month.