That is no less than 64 billion euros increased than the 96 billion euros initially foreseen by Scholz for subsequent yr.
Of the extra debt, 39.5 billion euros are earmarked to assist corporations whose enterprise has been hit by the coronavirus disaster, a draft of the price range seen by Reuters confirmed. About 2.7 billion euros will probably be accessible to pay for a vaccine.
Funds to pay for the final influence of the pandemic have been raised by 10 billion euros to fifteen billion euros.
Parliament this yr suspended Germany’s debt brake to permit the federal government to tackle web new debt of as much as 218 billion euros to finance rescue and stimulus measures.
However a coalition supply stated it was unlikely to wish the complete quantity. Scholz has stated he’ll ask lawmakers to droop debt limits once more subsequent yr.
The Finance Ministry was not instantly accessible for remark.
Germany has taken unprecedented steps to assist corporations and small companies to get by way of the disaster, liberating up billions of euros to forestall the economic system shrinking additional.
The federal government expects gross home product to contract by 5.5% in 2020, however to rebound by 4.4% in 2021.
($1 = 0.8437 euros)
(Writing by Christoph Steitz; enhancing by Barbara Lewis)
By Holger Hansen