The German government has approved a budget for the fiscal year 2026, which includes an increase of 32% in military spending.

People’s Finance News reported on July 30th that, on the local time of July 30th, the German cabinet passed the budget for the fiscal year 2026. According to the budget, the total government budget for Germany in 2026 is 520.5 billion euros, an increase of 3.5% compared to 2025. Among these, the defense budget has been increased to 83.7 billion euros, marking a significant increase of 32% compared to this year.
Furthermore, the current government led by Merz plans to further increase the defense budget to 152.8 billion euros by the end of its term in 2029, accounting for 3.5% of the Gross Domestic Product (GDP) that year. In the fiscal year 2026 budget, the German government plans to add 89.9 billion euros in debt, with most of it intended for investment to stimulate the economy and hope to escape recession and achieve growth.
The budget for the fiscal year 2026 approved by the German government has not been recognized by the opposition parties. The largest opposition party, the Green Party, criticized the ineffective or inefficient spending by the Merz government, which has increased the government’s debt burden. The Socialist Party expressed dissatisfaction with the reduction in welfare spending and tax cuts for high-income groups. The Communist Party accused the government of significantly increasing military spending while reducing expenditures on social governance and environmental protection.
The German government’s budget for the fiscal year 2026 will be submitted to both the Bundestag and the Bundesrat for review in the second half of this year.