BERLIN—Germany’s government wrote budget history last year, posting its first balanced federal budget since 1969, a year earlier than previously planned, the finance ministry said Tuesday.

Chancellor Angela Merkel’s government had originally planned to borrow €6.5 billion ($7.7 billion) in new debt last year, but higher tax revenue; lower debt-servicing costs due to low interest rates; and lower expenditure helped to achieve the balanced budget goal.

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