Draft Budget between COVID-19 and Anti-inflation Measures

Also in autumn 2022, economic conditions for preparing the draft budget are very difficult. The decline in COVID-19 related expenditures is offset by considerable additional expenditures to cushion the effects of the continuing increase in consumer prices, especially energy prices. Although the Maastricht deficit and debt ratios are declining over the medium term, this is largely due to the high inflation-driven nominal GDP growth. The rising interest rate level, the urgent need to catch up in the defence budget and the investment needs in important future-oriented areas (climate protection, childcare, education and qualification) as well as rising expenditures in areas influenced by demographic developments (long-term care, health, pensions) increase the urgency of structural reforms and efficiency enhancements in the public sector.