The German government on Monday gave the green light to further savings plans to ease the pressure on the 2024 budget, a government spokesperson said.

The savings decisions follow weeks of haggling over how to fill a 17-billion-euro ($19-billion) gap in the budget after a November court ruling threw the government's financing framework into turmoil.

The plans include cuts to subsidies for agricultural diesel, a higher air traffic tax and changes in benefits.

Tax break on agricultural diesel

Rather than abruptly ending the farmers' tax break on agricultural diesel as initially announced, the subsidy will be reduced by 40% this year, 30% in 2025, and 2026.

However, the watering down of the proposal was not enough for German farmers, who kicked off a week of nationwide protests by blocking roads with tractors on Monday.

Farmers will feel the effects from 2025 because the reimbursement will always be paid the following year. Therefore, The Ministry of Finance expects additional income of around 142 million euros in 2025, 285 million euros in 2026 and 419 million euros in 2027.

From 2028, the additional revenue is expected to amount to 453 million euros annually.

Air traffic tax

According to a document seen by Reuters, higher air traffic tax is expected to generate additional revenue of 445 million euros in 2024.

Social payments

Stricter sanctions for recipients of social benefits are expected to save 170 million euros, according to the document. Those who repeatedly fail to comply with certain government requirements of employment centers would lose their citizen's benefits.

Abolishing a bonus in the citizen's benefit for further training is expected to save 100 million euros.

The Federal Employment Agency will repay the government some money from the coronavirus crisis. This reimbursement amounts to 1.5 billion euros per year in 2024 and 2025.