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Jun 26, 1:19 PM EDT

German budget foresees 3.4 percent spending rise next year

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BERLIN (AP) -- The German government plans to increase spending by 3.4 percent next year while borrowing no new money for the third year running - helped by a strong economy that has boosted its tax income.

The budget plan released Friday envisions 312 billion euros ($350 billion) in spending, up from 301.6 billion euros this year. The budget is expected to increase over the following three years, reaching 333.1 billion euros in 2019, while new borrowing remains at zero.

The government plans to put more money into transport infrastructure over the coming years, as well as increasing foreign development aid and offering limited tax relief.

A strong economy and high unemployment have boosted the government's tax take, expected to rise to 290 billion euros next year from 278.9 billion euros this year.

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