Germany will suspend its debt break for the third year in a row, with excess spending expected to top $96 billion in 2022, according to Finance Minister Olaf Scholz.

The move will help fund state aid and stimulus measures that are designed to help the German economy recover from the financial hardships of the coronavirus pandemic. 

"Doing nothing would be much more expensive," Scholz. "Good aid policy is also good financial policy." 

The presentation of the 2022 budget coincided with the cabinet approving a $71 billion supplementary budget for 2021, which will raise net borrowing above $283 billion.

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When all is said and done, Germany's total pandemic-related debt could exceed $500 billion at the end of 2022, which marks a sharp break from austerity measures that have been long cherished. 

A debt brake is enshrined in the Germany continuation and limits new borrowing to 0.35 percent of gross domestic product.

"This budget really marks a U-turn by the current German government when it comes to fiscal policies," said Carsten Brzeski, an economist at ING Think in Frankfurt. 

The European Union's largest economy has repeatedly come up with a budget surplus for many years – refusing to take on excess debt. Between 2014 and 2019, Germany was in the green and called on member states to follow its lead. 

"Austerity was the trademark of the German government during the euro crisis," said Brzeski.

"Germany wanted to be the best in class, leading by example, showing how to get out of the debt crisis – namely by running physical surpluses, showing the rest of the world and the rest of Europe that it's possible."

But with coronavirus infections on the rise and the Robert Koch Institute warning that Germany has "entered a third wave" of the pandemic, federal spending to supplement lost income could have to continue until mid-summer. 

Germany's top firms have handled the economic consequences differently, but few have been able to continue to post the record results from before the pandemic. Tax income from consumers and businesses alike are expected to be down.