German government’s 2027 draft budget projects net funding needs of €196.5 bn, about 4.3% of GDP.
The estimate is €15 bn higher than 2026 and €23 bn above prior 2027 medium‑term forecasts.
Half of the deficit rise comes from accelerated defense spending to hit a 3.5% target by 2029; the rest reflects weaker growth.
A €20 bn budget gap remains, to be closed via ministry cuts, a plastic tax, and healthcare‑pension reforms.