German Govt Doc: Germany could face budget deficits for years to come - Bild

Germany’s Bild newspaper cited key highlights from an internal government document that the German government will face EUR 25 bln budget shortfall by 2023 if it doesn't tighten spending, Reuters reports.

The warning comes in a report prepared by the German Finance Minister Olaf Scholz to his ministerial colleagues as they prepare for a regular budget planning discussion.

Additional Details:

The budget deficit is mainly seen, as the tax revenues are set to fall and public sector wages are on the rise.

“The prospect of budget deficits would represent a dramatic deterioration in the finances of Europe’s biggest economy, which reported an 11.2 billion euro budget surplus last year.

In this tougher environment, a lower tax take will tear a 5 billion euro hole in the budget each year, Bild reported.

A 25 billion euro shortfall would mean a budget deficit of less than 1 percent of Germany’s current gross domestic product.”