BERLIN — Chancellor Angela Merkel's Cabinet has approved a draft budget proposal that foresees no new borrowing after this year — the first time Germany would accrue no new debt since 1969.
The finance ministry said Wednesday new net borrowing in 2014 would be reduced to 6.5 billion euros ($9 billion), the lowest level of new borrowing for 40 years, for total spending of 298.5 billion euros.
From 2015, the budget will require no new net borrowing at all even as annual spending rises to 327.3 billion euros by 2018, according to the proposal. The new draft budget is in line with a previous draft presented last year.
Finance Minister Wolfgang Schaeuble says Germany is focusing on investing in the future, and that "stability-oriented fiscal policies are policies for growth."