Germany approves of federal budget draft for 2026
(MENAFN) Germany’s cabinet approved the federal budget draft for 2026 on Wednesday, continuing a trend of record-high investment spending as the government focuses on modernizing infrastructure and strengthening national security.
Finance Minister Lars Klingbeil presented the draft, which allocates 520.5 billion euros (approximately 597 billion U.S. dollars) in expenditures for 2026, reflecting a 3.5 percent increase compared to the 2025 budget, which is still awaiting parliamentary approval.
Since taking office in May, the government has prioritized structural reforms and public investments as key measures to revitalize Germany’s economic growth.
The draft projects total investment to reach 126.7 billion euros next year, breaking the previous record set in 2025 for the second consecutive year. Notably, defense spending is set to rise significantly, alongside increased funding for transportation and housing projects.
Finance Minister Klingbeil emphasized, “Our primary goal is to safeguard jobs and ensure new economic strength. We are investing today to make Germany more modern, fair, and secure tomorrow.”
However, a significant portion of these investments will be funded through special off-budget funds, a method criticized by opponents for circumventing Germany’s constitutional debt brake and potentially understating the actual level of government borrowing.
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