Policy Update

Proposed second supplementary budget from German Ministry of Finance includes additional US$1.7 billion for Development Ministry in 2020, 2021

On June 15, 2020, the German Ministry of Finance (BMF) put forward its draft of a second supplementary budget for 2020 worth €24.0 billion (US$26.2 billion) to finance Germany’s response to the COVID-19 crisis, as well as its economic stimulus package. On June 16, 2020, the supplementary budget was adopted by the Federal Cabinet and will now have to be approved by the German Parliament.

The proposal includes budget increases for the Federal Ministry for Economic Cooperation and Development (BMZ) amounting to €1.6 billion (US$1.7 billion) for 2020. Another €1.6 billion in budget increases will be added towards BMZ’s 2021 budget. Taken together this sum almost equals the €3.2 billion (US$3.4 billion) requested by Development Minister, Gerd Müller, to finance his Corona Response Package. Müller welcomed the budget increase, stating that Germany is setting “an important example of solidarity, thereby fulfilling its responsibility in the world”.

Through the second supplementary budget, the Foreign Office (AA) will receive €560 million (US$611 million) for its humanitarian assistance work, the Ministry of Health (BMG) and the Ministry of Education and Research (BMBF) will receive additional €22.8 billion (US$24.9 billion), and €2 billion (US$2.1 billion), respectively.

Press release – BMF (in German)

News article – tagesschau (in German)

Press release – BMZ (in German)