By Maria Martinez

BERLIN (Reuters) - New EU rules further restrict Germany's fiscal space for its budgets, and more consolidation will be needed in the coming years to comply with European regulations, finance ministry sources said on Wednesday.

Germany received an adjustment path for the next four years from the European Commission in June, which served as the basis for a draft budgetary plan that Germany submitted on Tuesday.

The document shows that Europe's biggest economy will have to limit growth in net expenditure to 2.25% year-on-year in 2025, down from 3.75% this year, finance ministry sources said.

The medium-term fiscal plan shows that the general government deficit will be 2.5% of GDP in 2024, roughly the same as in 2023, when the deficit was 2.6% of GDP.

Based on the projections, the government deficit will go down to 1.75% in 2025.

The draft plan shows the debt-to-GDP ratio will rise slightly, from 62.9% last year to around 63.25% of gross domestic product in 2024, and will remain at that level in 2025.

Spending on financial transactions has the effect of increasing the Maastricht debt-to-GDP ratio but is not included when calculating the Maastricht deficit.

The new budget rules, put in place in April, allow countries at least four years to cut back on red ink before they face sanctions that could include fines or a loss of EU funding.

(Reporting by Maria Martinez, Editing by Miranda Murray and Bernadette Baum)