By Neetha Mahadevan

FRANKFURT--German Chancellor Angela Merkel wants to preserve budgetary discipline, despite the additional costs arising from the increasing numbers of refugees.

"We cannot just say, because we have a difficult task, the balanced budget or the issue of debt will no longer play a role," Mrs. Merkel said in her regular video podcast Saturday.

Accommodating the refugees and the integrating those who remain permanently is a "national task," Mrs. Merkel said. "States, municipalities and the federal government-each need to bear their fair share."

The government talking to countries and communities to see "how we can assist and help permanently," Mrs. Merkel said.

"We must set the priorities right again and again," Mrs. Merkel said, adding that even if there were many important tasks, the finance ministry still has the task of looking at the budget.

In an interview with local newspapers, Mrs. Merkel ruled out an increase in taxes to deal with the influx of refugees and migrants this year, and said the government will still aim to establish a balanced budget without taking on new debt.

She also said the country won't stop anyone from seeking asylum, as thousands of migrants desperate to leave Hungary made their way to Germany and Austria.

The country expects about 800,000 refugees and migrants this year--four times last year's level, many of them refugees fleeing war and persecution in Syria, Iraq and Eritrea.

Write to Neetha Mahadevan at neetha.mahadevan@wsj.com

(END) Dow Jones Newswires

September 05, 2015 06:33 ET (10:33 GMT)