June 27 (Bloomberg) -- Chancellor Angela Merkel’s Cabinet approved a spending plan that balances Germany’s federal budget three years earlier than required by its own rules.
Cabinet members meeting in Berlin today backed the 2013 draft budget and a spending blueprint through 2016, a government spokeswoman said by telephone.
Germany’s net federal borrowing will decline from 18.8 billion euros ($23.6 billion) next year to 13.1 billion euros in 2014, 4.7 billion euros in 2015 before touching zero in 2016, according to the plan presented by the Finance Ministry on June 22, which now goes to parliament.
The so-called structural deficit of the federal budget will shrink to 0.35 percent of gross domestic product next year, equal to the limit set in Germany’s national debt-reduction rules, according to the plan.
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