Europe

Germany raises tax income forecast, bolstering budget plans

German Finance minister Wolfgang Schaeuble arrives for the cabinet meeting of the German government at the chancellery in Berlin, Germany, Wednesday, May 4, 2016. Schaeuble will presents the latest tax estimate for Germany later the day. (AP Photo/Markus Schreiber)

German Finance minister Wolfgang Schaeuble arrives for the cabinet meeting of the German government at the chancellery in Berlin, Germany, Wednesday, May 4, 2016. Schaeuble will presents the latest tax estimate for Germany later the day. (AP Photo/Markus Schreiber)  (The Associated Press)

Germany has raised its forecast for government tax income thanks to a healthy economy and low unemployment, bolstering its insistence that it can continue to avoid running up new debt.

Wednesday's estimate foresees a 691.2 billion euros ($798 billion) tax take this year, 5 billion euros more than forecast in November. The forecast runs through 2020 and foresees a total 42.4 billion euros in additional tax income over five years.

Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble have made maintaining a balanced budget a major plank of their political platform, even as Germany faces the costs of dealing with a large influx of migrants.

Schaeuble said the estimate "strengthens us in being able to manage the current major challenges without new debt."