By Andrea Thomas
BERLIN (Dow Jones) — Federal Finance Minister Christian Lindner (FDP) estimates the cost of the federal government’s second relief package at 17 billion euros. On Thursday, the coalition presented an additional package of measures intended to help citizens because of the high energy prices. According to the Ministry of Finance, the financial volume of the first relief package presented a month ago is 13 billion euros.
“It is the political will of the coalition that this means that people are really relieved. That’s why I think it’s right that we waive the obligation to pay social security contributions with this energy flat-rate so that we can really achieve a noticeable relief,” said Lindner during the budget debate in the Bundestag.
Because of persistently high inflation, the SPD, Greens and FDP decided on Thursday to reduce the tax on power tax for a limited period of three months, to pay income taxpayers a one-off payment of 300 euros and to grant a one-time family bonus of 100 euros per child.
Budget so far with new debt of 99.7 billion euros
On Friday, the Bundestag discussed the federal government’s budget plans for 2022. The draft budget envisages new debt of 99.7 billion euros this year. However, a supplementary budget is to follow in order to finance the additional expenditure due to the effects of the Ukraine war. These include the two billion-euro relief packages.
Lindner wants to bring the supplementary budget to the Federal Cabinet on April 27th. “It should contain measures in connection with the Ukraine war. It is transparent that a supplementary budget will therefore also be presented so that Parliament can also examine whether these are really only tasks in connection with the management of the Ukraine war,” said Lindner.
This supplementary budget is to be adopted together with the 2022 budget law. Final decisions will be made in the final adjustment session in the Bundestag budget committee, which will meet on May 19. The final deliberation in the Bundestag is scheduled for June 3rd. Outside of the core budget, the special fund of 100 billion euros planned for the Bundeswehr will be added to the debt in 2022.
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(END) Dow Jones Newswires
March 25, 2022 08:47 ET (12:47 GMT)