A 172 billion euro deficit for the budget of 2027-2029, by 28 billion higher than the government’s calculation so far, is recorded in the federal budget planning by 2029, which is expected to be approved by the Council of Ministers.

The government’s previous calculations reported a deficit of 144 billion euros, but according to new data brought to light German media citing government sources, it will eventually reach 172.1 billion.

According to the first channel of German public television, the draft emphasizes that there is a “very high need for action”. The fiscal gap was partly expanded due to the “growth amplifier” with tax reliefs for businesses, but also by increasing the beneficiaries of the “mother’s pension” from 1.1.2027, a year earlier than originally planned.

The Bild newspaper, citing federal ministry sources, says the government should save 34 billion euros in 2027, 63 billion in 2028 and 74 billion in 2029. The ministry considers the “very high” deficit and deficit.

The government, according to the Coalition’s Planning Agreement, aims to reduce the staff of the ministries by 2% each year and to reduce administrative expenses by 10%. Financing programs have already been reduced by one billion euros, as well as growth costs. Finance Minister Lars Klingbil has stated that in his efforts to save resources will be based on proposals submitted by welfare committees for cuts in care, pensions and overall welfare policy.

The budget debate will begin on September 23 and must be completed with the approval of the plan on November 28. Its total amount is EUR 520.5 billion, up 3.5% compared to 2025.