Budget of Germany

The public sector budget of Germany is divided among the administrative divisions of the country.

Since 2009, Germany has a balanced budget amendment in its Constitution, the so-called "debt brake" (Schuldenbremse in German), which restricts annual structural deficits to 0.35% of GDP.

[5][6][7] If a natural disaster or extraordinary emergency exists, the debt brake may be temporarily suspended for a budget year by a majority vote in Parliament, as was done in 2020-2023.

[8][9] On a sub-national level, the debt brake bans Germany's 16 states from running structural deficits, a restriction which came into effect in 2020.

In the short term, such deficits are commonly financed by borrowing money which has led to the significant long-term debt of the German federal government.