Economists complain about redistribution and few investments



road construction

The federal government is spending too little money on future projects, such as road construction, economists warn.

(Photo: imago images/Ralph Peters)

Berlin For a federal finance minister, promising to increase investment is considered good manners. “We have record investments in the federal budget. It stays that way.” said Christian Lindner (FDP) just recently when he appeared with Chancellor Olaf Scholz (SPD). During his time as finance minister, he liked to talk about “future tasks” that he covered in the budget.

However, according to a new study by the Kiel Institute for the World Economy (IfW Kiel), investments in the federal budget still play a subordinate role. The IfW experts have analyzed the budgets since 2000. Her verdict: “Germany’s federal governments mainly redistribute budget funds, the dominant item is social spending with up to more than 40 percent of all spending,” says the study, which is available to the Handelsblatt in advance. “In contrast, the state only invests to a much lesser extent in infrastructure, education or its institutions.”

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