Households in Rapid Succession: Current Situation Unveiled

The German government is gearing up for the 2026 budget, with Finance Minister Lars Klingbeil leading the charge. The budget, which is currently being worked on in parallel with the 2025 budget, is expected to be higher spending and higher debt, amounting to approximately 520.5 billion euros.

Klingbeil has started working on the budget for 2027 months earlier than usual, and state secretaries of the ministries are to meet as early as September. The approval of the budget is virtually certain, with the Bundestag scheduled to make a final decision in the week of 16 to 19 September.

The 2025 budget, meanwhile, is ready for voting in the Bundestag. Once the 2026 budget is approved, it will be a regular budget for the entire year, providing for expenditures of around 502.5 billion euros. However, it's worth noting that the approved budget will only be valid for three months due to the breakup of the traffic light government, the early federal election, and the new government formation.

The budget for 2026 is not without its challenges. The federal government is compensating for tax losses of the states, expanding the mother's pension a year earlier, and starting to repay loans from the Corona period, which are contributing to the funding gaps. Each ministry is expected to submit savings proposals for one percent of its budget to help plug these gaps.

Cuts are also planned for development expenditures in the 2026 budget. Chancellor Friedrich Merz (CDU) has set a savings target for Minister of Labor Bärbel Bas (SPD): ten percent, or five billion euros, should be cut from the citizens' allowance. Convincing the population of these tough savings decisions will likely be a real test for the Union and SPD in the coming months.

The budget review session in November for the 2026 budget is expected to last until 12:00, but could extend to 3:00 or 5:00 in the morning. The budget will only flow into the renovation of sports facilities in municipalities from the debt-financed special fund for infrastructure over the next four years, amounting to one billion euros.

Additional funds are also available for the Technical Relief Agency (THW). The first debate for the 2026 budget is scheduled for the last week of September. It's important to note that the search results do not provide information on which party has appointed the chairman of the Bundestag Budget Committee for the year 2025.

Looking further into the future, the budgets for 2027, 2028, and 2029 are facing massive funding gaps: 34 billion euros in 2027, 63.8 billion euros in 2028, and 74 billion euros in 2029. Klingbeil does not rule out the possibility that laws will have to be changed and existing claims will have to be waived to plug these funding gaps.

In conclusion, the 2026 budget is shaping up to be a challenging one for the German government, with tough decisions ahead regarding spending and savings. The approval process is underway, and the budget, once passed, will provide the framework for the country's financial management for the remainder of the year.