German cabinet approves 2015 budget

The German cabinet on Wednesday approved a budget plan for 2015 with the federal government not needing to borrow any new loans next year.
In 2015, the federal government plans to spend 299.5 billion euros (409.1 billion U.S. dollars), up from 296.5 billion euros in the current year, according to a statement released by the Federal Finance Ministry.
The government said it would increase investments in transportation infrastructure, education, science and research. However, no new debt will be raised to support the expenditure -- for the first time this will happen since the end of the 1960s -- and the debt-free period should last at least until 2018, according to the ministry.
"The federal budget is balanced, we spend only what we take," said Finance Minister Wolfgang Schaeuble in the statement. "We invest in the future of Germany, without creating any debt."
Tax revenue will increase as planned to 278.5 billion euros in 2015 from 268.2 billion euros this year. The German governments' tax income was boosted by the robust economy, forecast to expand by 1.8 percent in 2014 and by 2 percent in 2015.
Germany aimed to limit its debt-to-GDP ratio to below 60 percent, as requested by the Maastricht Treaty of European Union. According to the Finance Ministry, the ratio will fall to 70 percent by 2017.