The cost of fighting the coronavirus pandemic this year might reach up to €2 billion and the amount of the state budget reserve would thus be insufficient, the independent fiscal watchdog Budgetary Responsibility Council (RRZ) has posted on a social network. If the Government fails to find additional sources of financing in savings in other budgetary chapters, the increased costs will significantly increase the estimated general government deficit, stated the Council. "The budget included a reserve of some €1 billion for the case that the pandemic situation would become more complicated or other unforeseen circumstances would arise. However, the second wave is developing much worse and lasting much longer than was expected at the time when the budget was approved," said RRZ.
The Council estimates that up to € 1.5 billion will be spent on supporting the economy and social measures, in particular maintaining jobs via kurzarbeit (short-time work). The cost of the purchase of medical supplies, including antigen test kits and vaccines, is estimated at €407 million. Expenditure on mass testing, the operation of mobile testing points and January bonuses for working in COVID departments should amount to €81 million.
