Today, public budgets must do more than simply allocate funds – they must shape the future. In the face of the climate crisis, demographic change and growing pressure to deliver results, mere resource allocation is no longer enough; impact is needed. The newly published UBA Report 36/2026 on the FiFo project demonstrates how green budgeting offers a modern, impact-oriented approach to budgetary management whilst also serving as a tool for environmental and climate protection. Drawing on international experience, the report develops actionable approaches for Germany – for a sustainable fiscal policy that provides targeted governance and delivers societal impact.