Previous record exceeded three times. Finance Minister Scholz: “Our resolute aid policy is working”.
As a result of the corona pandemic, the German state took on higher new debts than ever in its history. In total, additional loans amounting to 130.5 billion euros were taken out, according to the Ministry of Finance on Tuesday.
The previous record was 44 billion euros in 2010. The new debt remained well below the credit line of up to 218 billion euros approved by the Bundestag.
In the Ministry of Finance this was justified by the fact that the economy had not slumped as much as feared. As a result, tax revenues are above expectations, while expenses for corona aid and social security are lower.
“Our resolute aid policy is working,” said Finance Minister Olaf Scholz. “We spent a lot of money on health protection, supporting the economy and securing jobs.” That pays off in many ways.
Record could be exceeded further
“Despite the pandemic, we have finances well under control,” added the Social Democrat. “We have the strength to continue to take massive action against the Corona crisis, and that is exactly what we are doing.”
However, the new debt record could already be exceeded this year. In the 2021 budget, new debt of 180 billion euros is planned. The budget alone provides almost 40 billion euros for corporate aid and 35 billion euros as a reserve for potential expenses that have not yet been quantified in connection with the virus pandemic.
The Ministry of Finance is therefore confident that the money will be enough despite the planned expansion of the Corona aid under bridging aid III.
