BERLIN - Germany can cope with a record influx of refugees this year without raising taxes and without jeopardizing its balanced budget, Chancellor Angela Merkel said on Saturday.

With relatively liberal asylum laws and generous benefits, Germany is the European Union's biggest recipient of refugees fleeing war in the Middle East and economic migrants from southeastern Europe.

More than 100,000 asylum seekers entered in August, and the about 800,000 refugees and migrants are expected in Germany in total this year - four times last year's level.

In light of the influx, the government plans to introduce a supplementary budget to free up funds for the refugees and to help towns on the frontline that are already struggling to fund accommodation and medical care for the new arrivals.

"We cannot just say 'Because we have a difficult task now, the balanced budget or the issue of debt are no longer important'," Merkel said in her weekly video podcast.

In an interview with local newspapers, Merkel promised that Berlin would not raise taxes because of the refugee crisis.(Reuters)