Tech & Science Scholz plans with almost 100 billion euros in debt and budget holes

19:05  18 september  2020
19:05  18 september  2020 Source:   de.reuters.com

Shoppers share their latest homeware buys from The Reject Shop

  Shoppers share their latest homeware buys from The Reject Shop Australian shoppers have been showing off their incredible must-have buys from The Reject Shop after the budget retailed unveiled a stunning homewares range that rivals Kmart and Aldi. The discount chain experienced a huge increase in sales, driven by customers panic buying during the COVID-19 crisis - making it one of a few retailers to flourish during the pandemic.And the retailer, which is best known for its very affordable everyday items, has continued to win over its shoppers by dropping hidden gems in its homeware aisles.

Annual award ceremony of the M100 media prize in Potsdam © Reuters / HANNIBAL HANSCHKE Annual award ceremony of the M100 media prize in Potsdam

- by Holger Hansen

Berlin (Reuters) - The federal government can only comply with the debt brake from 2022 at the risk of billions of holes.

Finance Minister Olaf Scholz wants to take on 96.2 billion euros in new debt for the coming year, as his ministry announced on Friday. That would be the second highest new debt since the existence of the Federal Republic of Germany. "The debt brake should then apply again from 2022," said a ministry representative. "Action is still required for this." A total of more than 42 billion euros will be missing in the years 2022 to 2024. Nevertheless, the ministry does not want to redefine it or increase taxes. "We are not planning any measures to close this need for action on the income or expenditure side," said a ministry representative.

Tennis tournament's incredibly 'petty' move

  Tennis tournament's incredibly 'petty' move A measly 10 euros. It may be the pettiest short-changing in tennis history by leading offender the Italian Open.The Italian Open, with the gun of COVID-19 pointed at its head, corrected a massive pay discrepancy this year when it reworked prize money across both the men's and women's tournaments.

The debt brake should be adhered to again from 2022. To this end, the ministry wants to dissolve the former refugee reserve of 48 billion euros from 2022 to 2024 and exploit the limits of new debt every year. According to the planning, that would be 10.5 billion euros in 2022, 6.7 billion euros (2023) and 5.2 billion euros (2024). Nevertheless, there is still a financing gap in the planning of over 42 billion euros for these years. The ministry said it "would not be unlikely" if these gaps would be resolved through better economic development.

For 2021, the ministry plans to spend 413.4 billion euros. For the current year, the originally planned budget of 362 billion euros had swelled to 509 billion euros due to two supplementary budgets to deal with the virus crisis. The Bundestag approved new debts in the record amount of 218 billion euros. For this, Parliament had to pass an exception to the debt brake, as is now also planned for 2021. This is mainly justified with the consequences of the coronavirus crisis. The cabinet is expected to launch the draft budget next Wednesday.

How two million Australians have exceeded their credit card limit

  How two million Australians have exceeded their credit card limit The coronavirus crisis has seen 15 per cent of Australia's credit card users exceed their borrowing limit. Women and younger people were more likely to be among those two million people.Reduced working hours from the coronavirus recession mean even more Australians are relying on plastic debt to pay their bills and buy essentials.


The largest item in the 2021 draft budget is reported to be the payments to the pension insurance, amounting to around 106 billion euros. The Federal Employment Agency (BA) receives a commitment in the budget law that it should start the year 2022 free of debt. To this end, the federal government wants to waive all loans at the end of 2021 and convert liquidity aid into grants. In its Reuters scenario, the BA is currently assuming a deficit of just under ten billion euros. Investments are estimated at 55.2 billion euros in 2021 and will remain stable at 48 billion euros from 2022.

Scholz was accused from the opposition that he was "far behind what is possible". Green housekeeper Sven-Christian Kindler said: "A change to a socio-ecological transformation is not recognizable in the budget draft." SPD budget expert Dennis Rohde, on the other hand, underlined that the budget for 2021 stands for "investments in future technologies, infrastructure, social cohesion, innovations and the fight against climate change". Union housekeeper Eckhardt Rehberg warned that the finances would only be in order again if the debt brake was adhered to again: "Always new spending requests cannot be financed."

WA to deliver surplus budget despite pandemic payments on back of iron ore price rise .
The WA Government reports a $1.7 billion budget surplus for 2019-20 despite the economic toll of the COVID-19 pandemic, with the State Opposition labelling it "unacceptable" and urging the Government to spend more to help struggling households. The WA Government's Annual State Finances report showed a $920 million hit to the $2.6 billion general government budget surplus forecast in December.The report showed a fall in general government revenue and an increase in recurrent spending, mainly due to the pandemic forcing unforeseen spending on frontline services and support measures for households and businesses.

usr: 0
This is interesting!