- Total spending: €524.5 billion
- Debt: €180 billion
- Interest payments on debt: approximately €30-34 billion
Key areas where the government is investing
- Infrastructure: Approximately €58.3 billion is allocated from the main budget and a similar amount from the special €500 billion fund. The investment will be used to expand electric vehicle charging stations, modernize rail, and upgrade the road network.
- Defense: €108 billion
- Personnel salaries: €24.7 billion
- Operations & Maintenance (barracks, facilities): €11.3 billion
- Equipment & Procurement (weapons, munitions): munitions (€12.6 billion ), IT/cyber (€2.5 billion), artillery/drones/armor for Ukraine aid (€11.5 billion).
- Other: cyber hub (€40 million) and research/culture (€7.4 million)
- Climate and Energy: €82 billion
- €33 billion: Funds renewables, energy efficiency in homes, hydrogen tech, and transport upgrades.
- €49 billion: Supports grid expansion and energy infrastructure.
- Social Housing: €2.65 billion for affordable housing development and social infrastructure.
- Research and Innovation: €17.1 billion for digitalization initiatives and artificial intelligence.
How much budget is spent on social security?
€197.4 billion is allocated to social security. It’s 38% of the total budget. It was €184 billion in 2024.
- Pension Insurance: €128 billion goes to the statutory pension system to maintain stability as the population ages.
German pension system explained ->
- Basic Security in Old Age/Disability (Grundsicherung): €12.3 billion – supplements for low pensions.
- Citizen’s Income (Bürgergeld): €51 billion
- €28 billion core benefits
- €13 billion housing costs
- €4.7 billion job integration.
