German 2022 budget plans 100 billion in new borrowing – source

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BERLIN – Germany’s draft budget for 2022 envisages just shy of 100 billion euros (dollars) in new borrowing, a person familiar with the budget planning said, meaning it would not exceed the ceiling Finance Minister Christian Lindner had earlier set up.

The 100 billion euro special fund for building up Germany’s armed forces, previously announced by Chancellor Olaf Scholz in response to Russia’s invasion of Ukraine, would be financed by borrowing set out in a separate law, the person added.

The 2022 draft budget will be discussed by Germany’s cabinet next Wednesday, along with mid-term financial planning until 2026 and the armed forces special fund.

(Reporting by Holger Hansen, writing by Thomas Escritt; Editing by Madeline Chambers)