BERLIN (MNI) – The German Finance Ministry in its draft for a
supplementary budget for this year plans to raise federal net new
borrowing in 2012 to E34.8 billion from the previously earmarked E26.1
billion, a senior government official said Friday.
The supplementary budget became necessary because Europe’s
permanent European bailout fund, the European Stability Mechanism, will
be created this year and requires Germany to shoulder E8.687 billion of
the financing of the fund in 2012.
In the 2012 supplementary budget draft, expenditures will be raised
to E312.7 billion from E306.2 billion in the initial budget bill, the
source said. Federal tax revenue is now seen at E249.7 billion (up from
E249.2 billion). Mainly due to the lower Bundesbank profit, other
revenue is seen down to E28.2 billion from the previously earmarked
E30.9 billion.
The German government cabinet is to adopt the supplementary budget
draft next Wednesday. It is also to approve the first draft of the 2013
budget bill and the medium-term fiscal plan until 2016.
The ministry foresees federal net new borrowing of E19.6 billion
for 2013, E14.6 billion for 2014, E10.3 billion for 2015 and E1.1
billion for 2016, the official said.
Federal expenditures are tabled at E300.7 billion in 2013, E303.5
billion in 2014, E307.9 billion in 2015 and E309.3 billion in 2016, the
source explained.
Federal tax revenue is projected at E256.5 billion in 2013, E268.0
billion in 2014, E276.6 billion in 2015 and E287.3 billion in 2016, the
official said.
Other revenue is seen at E24.7 billion in 2013, E20.9 billion in
2014, E21.0 billion in 2015 and E20.8 billion in 2016, the official
said.
The federal structural deficit is tabled at 1.00% of GDP this year,
at 0.54% in 2013, at 0.26% in 2014, at 0.14% of 2015 and 0.01% in 2016,
the source said.
The country’s debt limitation bill requires the federal government
to bring its structural deficit down to 0.35% of GDP by 2016. If the
finance ministry calculations prove correct, the government will
have achieved this goal two years ahead of schedule.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
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