Germany's cabinet approved on Wednesday the first draft of the 2024 budget for Europe's biggest economy and its financial plans through to 2027, the finance ministry said. "Today we have adopted a budget proposal aligned with fiscal realities," German Finance Minister Christian Lindner said in a presentation of the draft budget to media.

Germany will slash new public borrowing to within mandated limits next year, as the state progressively reins in spending that surged in response to COVID-19 and the war in Ukraine.

"We are now ending the crisis era of expansive fiscal policies," Lindner said.

Lindner plans net new debt of 16.6 billion euros ($18.1 billion) for 2024, respecting the debt brake, which constitutionally limits the budget deficit to 0.35% of economic output.

(Reporting by Maria Martinez Editing by Madeline Chambers)