Chancellor Angela Merkel’s nation is renown for its Budget Surpluses
Angela Merkel‘s nation is Germany, it is a renowned nation for fiscal discipline. The country has in the past operated on surplus budgets.
In August, 2016 the country announced a budget surplus to the tune of 18.5 billion euros.
The story of budget surplus in Germany started in 1991 after the reunification.
Chancellor Angela Markel is known for pushing for balanced budgets as a landmark of her economic policy. At one point Jens Spahn boasted that:
“These figures show that Germany is doing well, we invest more than ever- and still have surpluses.”
According to the Christian Democrat where the Angela Merkel belongs, part of the surplus will be used to lower Germany’s public debt which is approximated to be 68.2 percent of Gross Domestic debt (GDP). This is far above the 60 percent ceiling set by the European Union (EU) regulations.
The finance Minister even indicated that the surplus for 2017 will be used to cut on income taxes. While Germany is having one of the largest budget surplus, her neighbor France had the largest budget deficit.