German Ministry of Finance presents budget caps for 2021 federal budget bill, financial plan 2020-2024
On March 18, 2020, the German Federal Ministry of Finance presented the budget caps for the 2021 federal budget bill and individual ministerial budgets, as well as for the financial plan 2020-2024.
The Ministry for Economic Cooperation and Development (BMZ) will be allocated €10.9 billion (US$11.9 billion) for 2021. Thus, between 2020 and 2021, the BMZ budget remains stable, interrupting, for the first time, an upward trend since 2013. According to the key figures, the BMZ budget will fall by 14% in the 2021-2024 period (-US$1.7 billion). Costs for Germany incurred by the ongoing COVID-19 outbreak have not yet been quantified, therefore the budget caps are still volatile and could be subject to change.
German Development Minister Gerd Müller emphasized the importance of maintaining a stable BMZ budget in 2021 – to support the health infrastructure in low-income countries, especially during the COVID-19 outbreak, and to continue the vital work in regions affected by crises.
Criticism from a coalition of German CSOs (ONE, Oxfam, Global Citizen, Save the Children, Plan International, and DSW) pointed out that the newly unveiled plans do not mirror the parliamentary coalition agreement. They called for increased funding for the fight against poverty and the strengthening of health systems to reach the Sustainable Development Goals and implement Germany’s 0.7% ODA/GNI target.