German Finance Minister Christian Lindner plans to increase new debt to over 40 billion euros for the 2025 federal budget, while still adhering to the debt brake.

The coalition government has agreed on a total expenditure of 481 billion euros, 29 billion more than initially planned.

Despite the increased spending, Lindner emphasizes a record high of 57 billion euros for investments.

The agreement includes a 5-euro increase in child benefits and adjustments to income tax brackets.

Chancellor Olaf Scholz, along with ministers Habeck and Lindner, presented these plans as part of a broader growth initiative, aiming to balance fiscal responsibility with economic stimulation.