Germany's parliament approved Friday a budget of 270.5 billion euros (about 351 billion U.S. dollars) for the year of 2007, which includes the lowest net borrowing since the country's unification.

The Bundestag, or the lower house of the parliament, approved the bill with a clear majority. The Bundesrat, the upper house which is composed of premiers of the 16 federal states, is expected to adopt it too.

Under the bill, Finance Minister Peer Steinbrueck will be allowed to borrow 19.6 billion euros, the lowest government borrowing since 1990.

Steinbrueck said that the budget deficit will probably fall to 2.1-2.2 percent of the gross domestic product, which will undershoot the 3 percent limit set by the European Union for the eurozone countries.

He expressed his confidence that the government would reduce its national debt, which is worth of 1,500 billion euros now, and reduce the deficit to around 1.7 percent in 2007.

The bill gives the biggest budget in 2007, about 124.4 billion euros, to the German Labor and Social Affairs Ministry.

Germany, the largest economy in Europe and the third largest in the world, has seen its deficit above the EU limit set for eurozone members since 2001.

Source: Xinhua