Budget planning in the context of the financial constitution of the Federal Republic of Germany: Current trends

Subject. This article discusses the issues of implementation of the debt brake mechanism included in the Basic Law of the Federal Republic of Germany in 2009. Objectives. The article aims to consider the impact of the debt brake introduced into the budget planning process to improve the situation in public finances, i.e. reduce the debt burden and ensure a balanced budget without increasing borrowing. Methods. For the study, I used the logical and statistical analyses methods. Results. The article finds the positive effect of the debt brake in 2014–2019, the state of public finances during the period when the brake was removed due to the pandemic (2020–2021) and the energy crisis (2022–2023), and the dramatic restoration of this mechanism during the budget crisis of 2023. The article reveals strong fluctuations in budget policy in the context of planning and execution of the 2023 budget and the 2024 plan. Conclusions. The article concludes that the current budgetary situation in Germany has not yet returned to pre-pandemic financial and political normality and it has become an important reason for the government crisis.