Federal Budget Allocates EUR19 Billion for Health Sector
In a significant development, the newly established black-red coalition government has reached an agreement on the federal budget for the current year, following last year's breakdown of the Ampel coalition over budgetary disputes. Finance Minister Lars Klingbeil presented the budget draft in the Bundestag, highlighting that this year's budget will total EUR503 billion, a notable increase from EUR477 billion in 2024.
The budget includes substantial allocations across various ministries, with the Federal Ministry of Labor and Social Affairs receiving the largest share of EUR176 billion. Notably, EUR127 billion of this amount is designated for pension insurance subsidies. The Ministry of Defense follows with an allocation of EUR62 billion.
The Federal Ministry of Health (BMG) is set to receive EUR19.3 billion, ranking seventh among federal ministries. This showcases an increase from the previous year's budget of EUR16.7 billion. The highest budget allocation for the BMG was during the pandemic year of 2022, where it had a budget of over EUR66.4 billion under former Health Minister Karl Lauterbach.
Of the total budget for the BMG, EUR16.8 billion will primarily support the statutory health insurance system. Additionally, EUR959 million is earmarked for preventive measures and support for health organizations. A further EUR581 million is allocated for nursing care and other social security provisions. The Robert Koch Institute will receive EUR192 million to bolster its public health initiatives.
The government is optimistic about the budget draft, with Klingbeil emphasizing the importance of investing in the nation's future. He stated that this budget represents an unprecedented commitment to making the country stronger, safeguarding jobs, and enhancing social cohesion. The coalition aims to commence discussions for the 2026 budget within the week.
However, the budget draft has faced criticism from opposition parties. Michael Espendiller, the budgetary spokesperson for the Alternative for Germany (AfD), cautioned about the implications of the high levels of new borrowing. He pointed out that the government plans to incur EUR143.1 billion in new debt this year, which amounts to a quarter of the budget being financed through loans rather than actual revenue. He described the proposed budget as a reckless financial strategy.
The Greens, who previously supported the easing of the debt brake at the start of the year, have also expressed dissatisfaction with the current budget proposals. Sebastian Schäfer, the budgetary spokesperson for the Greens, remarked that while the increased borrowing could present a historic opportunity for investment, it appears that the funds are being diverted to maintain existing programs rather than pursuing innovative investments for the future. He criticized the government for prioritizing short-term political gains over long-term infrastructure development.
As the Bundestag prepares for further negotiations regarding the details of the budget, the focus remains on how effectively the government can balance fiscal responsibility with the pressing needs of the health sector and other essential services.