Germany's cabinet on Friday approved a 2023 draft budget that foresees net new borrowing of 17.2 billion euros ($17.98 billion), reducing the level for the first time since 2019 and marking a return to debt brake rules, a government official said.
The German parliament had suspended the debt break between 2020 and 2022 to allow for extra spending related to the coronavirus pandemic and the effects of the Ukraine war. This year, net new borrowing of 140 billion euros is expected.
The Bundestag lower house of parliament is due to pass the draft in November. ($1 = 0.9567 euros) (Writing by Madeline Chambers, editing by Rachel More)