(de-news.net) – The red-green minority government and the FDP have reached an agreement on tax relief for fiscal drag and an increase in child benefits. These measures are anticipated to be implemented before the Bundestag election in February. According to former Finance Minister Christian Lindner, the FDP, which has exited the coalition, will support the government factions on these initiatives. However, the approval of the Bundesrat remains necessary for the law to be enacted.

Recently, the FDP demanded amendments to the draft law on fiscal drag. The current proposal includes a moderate mitigation of fiscal drag and an increase in the tax-free subsistence level. Additionally, from the beginning of the new year, child benefits are set to increase by five Euros to 255 Euros. The child allowance is to be raised by 60 Euros to 6,672 Euros. The immediate child supplement for low-income families is to increase by five Euros to 25 Euros per month. The FDP had conditioned its approval on the stipulation that the initiatives do not generate new bureaucratic costs for businesses.