The German government is set to ramp up investment spending by 10 billion euros ($13 billion) until 2018 to fuel economic growth, Finance Minister Wolfgang Schäuble (pictured) said Thursday.

He added there would be no increase in federal borrowing to finance the investment.

Known for its focus on austerity, Germany has faced growing calls from some EU partners to do more to help the eurozone economy so that the 18-member bloc doesn't slip into another recession.

Less revenue

Schäuble stressed there could be some elbow room regarding the amount, if spending was restrained in the next few years.

The news coincided with the presentation of the government's fresh tax estimate, which revealed Berlin was likely to lose out on 6.4 billion euros in expected tax revenue due to the current economic downturn.

Tax analysts say this figure could add up to 20.9 billion euros of lost income for the state by end 2018.

el/hg (dpa, AFP, Reuters)