Supplementary budget due to Corona: 218 billion in new debt to tackle the crisis

The Federal government can take to deal with the Corona-crisis this year-a record debt of almost 218 billion euros. The Bundestag decided on Thursday the second

Supplementary budget due to Corona: 218 billion in new debt to tackle the crisis

The Federal government can take to deal with the Corona-crisis this year-a record debt of almost 218 billion euros. The Bundestag decided on Thursday the second supplementary budget to Finance the stimulus package. Thus, the planned for the current year borrowing rises to 217,8 billion euros. With the extra money, in particular, measures are to be financed, which should boost consumption and the economy in the coming months.

Vice-Chancellor Olaf Scholz (SPD), promised the Federal government will not save the crisis. "And we will not interfere with the social state that leads us so powerful through this crisis, but to expand it," said the Finance Minister. So would increased in spite of the crisis in January, the pensions of people with low salaries, by the basic pension.

The debt ratio is rising by the second supplementary budget of 60 to more than 75 percent. By the end of March, the Bundestag had increased the budget by 156 billion euros to tax shortfalls and to Finance a number of auxiliary packages. The fault was the brake has been exposed to in the basic law.

Now, a lower rate of VAT when shopping is valid for a year and a half. Families get a Bonus of 300 Euro per child. In addition, small and medium-sized companies because of the crisis, particularly high drop in sales to get Bridging loans of almost 25 billion euros. The Federation and the Länder to balance the trade tax losses in the municipalities.

in the supplementary budget, the latest tax estimate is taken into Account. Meanwhile, the Federal government assumes that, due to the Corona-crisis around 40.5 billion euros in taxes are less pure, as to be thought the beginning of the year.

Updated Date: 02 July 2020, 06:20

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