Billion gap: Ministry of Finance imposes funds freeze on all ministries | EUROtoday
Ministry of Finance imposes funds freeze on all ministries
The federal authorities is extending the funds freeze following the Federal Constitutional Court’s ruling on the local weather fund. The block now applies to virtually the whole federal funds, as will be seen from a letter from the Federal Ministry of Finance.
DThe federal authorities apparently assesses the consequences of the Federal Constitutional Court’s ruling on the local weather fund as extra severe than beforehand assumed. On Monday, the Federal Ministry of Finance prolonged the funds freeze imposed on the Climate and Transformation Fund (KTF) to virtually the whole federal funds for 2023. The German Press Agency, the Reuters information company and the “Spiegel” reported this unanimously. No remark might be acquired from the Ministry of Finance.
The “Spiegel” quoted from a letter from the accountable State Secretary Werner Gatzer. “In order to avoid further prior burdens for future financial years, I therefore intend to block with immediate effect all commitment authorizations that were set out in individual plans 04 to 17 and 23 to 60 of the 2023 federal budget and are still available,” the letter says. Gatzer refers to Section 41 of the Federal Budget Code, which regulates a funds freeze.
The particular person budgets of all ministries are affected by the person plans talked about. Individual plan 60 consists of the local weather and transformation fund and the 200 billion euro protection umbrella to curb vitality costs. According to the checklist, constitutional our bodies such because the Federal President, the Bundestag, the Bundesrat and the Federal Constitutional Court are excluded.
A dedication authorization permits an administration to enter into cost obligations for future years, for instance for multi-year tasks. Current editions this 12 months are subsequently not affected. It additionally mentioned that present liabilities would proceed to be met, however that no new ones can be allowed to be entered into. “In exceptional cases, commitment authorizations can be unblocked.”
The Federal Constitutional Court canceled 60 billion euros from the federal authorities final Wednesday as a result of the switch of unused Corona loans to the local weather fund was unconstitutional. The authorities now lacks the cash. There are additionally additional clarifications from the courtroom on the debt brake within the Basic Law and the legality of loans, which may even have penalties for the present 2023 funds and the deliberate 2024 funds. On the day the decision was introduced, Finance Minister Christian Lindner (FDP) ordered a funds freeze just for the local weather fund.
As a results of the ruling, “the federal budget needs to review the overall financial situation,” writes Gatzer. After the funds freeze, I can at finest maintain out the prospect of a launch of dedication authorizations (…) requested by the ministries in particular particular person circumstances within the occasion of a necessity that can not be denied by way of reality and time. “A particularly strict standard is applied to prove such a need”.