Savings package approved: What do the subsidy cuts for farmers and the higher airline ticket tax mean?

Savings package approved: What do the subsidy cuts for farmers and the higher airline ticket tax mean?

According to a report by www.faz.net, the federal government has launched measures from the austerity package for the 2024 budget. These include subsidy cuts for farmers and an increase in the ticket tax for air travel.

The adjustments to the austerity package have consequences that can have a wide range of effects on the market and the financial sector. The higher ticket tax on air travel, which will come into force from May, for example, will lead to an increase in costs for air passengers. This could have a negative impact on the airline industry as higher prices can affect demand.

The subsidy cuts for farmers could have an impact on the agricultural industry and the wider economy. The gradual abolition of tax relief for agricultural diesel will place a financial burden on agricultural companies. This could lead to higher production costs and affect the prices of agricultural products.

The planned tightening of citizens' money could have an impact on social security and consumer spending. A cancellation of the citizen's allowance bonus and the possibility of reducing the citizen's allowance for refusing to work could worsen the financial situation of those affected and result in a reduction in consumption.

The reduction in the federal subsidy for statutory pension insurance and the repayment of financing contributions from the Federal Employment Agency will affect the pension system and unemployment benefits. This can have long-term effects on the social security of the population.

The 2024 federal budget is expected to be approved by the Bundestag at the end of January. The Budget Committee is scheduled to vote on the changes in mid-January, although possible changes can still be made in the parliamentary procedure.