Germany's finance minister says the country will keep its budget balanced despite increasing spending on research, training and infrastructure, as well as dealing with the huge influx of migrants last year.

Germany's budget has been balanced since 2014 and Finance Minister Wolfgang Schaeuble told Parliament on Tuesday his plans through 2020 foresee it remaining that way. His budget for 2017 includes a 3.7 percent increase in spending as well as some limited tax relief measures, which he says will be offset by higher tax receipts thanks to economic growth.

Schaeuble says Germany "must now prove that the integration of the many refugees can succeed." Hundreds of thousands of refugees and other migrants came to Germany last year.