BERLIN (Reuters) - Germany’s government has lowered its 2012 net new borrowing estimate in its second supplementary budget to 27.7 billion euros from a previous forecast of 32.1 billion euros, a German coalition source said on Monday.
Last week, finance ministry estimates showed that tax revenue would likely be 5.8 billion euros higher this year than previously forecast. The coalition source said this positive development and lower interest costs on German government debt have enabled Berlin to cut its net new borrowing target.
The Bundestag lower house of parliament has yet to pass the second supplementary budget, which became necessary due to increased spending on child care, a contribution of 1.6 billion euros to the European Investment Bank and further costs related to Berlin’s much-delayed new airport.
Reporting by Matthias Sobolewski; Writing by Sarah Marsh