Navigation and service

20 December 2018

Overview of fed­er­al bud­getary and fi­nan­cial da­ta up to and in­clud­ing Novem­ber 2018

Translated extracts from the Federal Ministry of Finance’s December 2018 monthly report

Federal budget trends up to and including November 2018

Trends in the federal budget

 

Actual 2017

2018 target

Actual1 January–

November 2018

Expenditure (€bn)2

325.4343.6304.4

Year-on-year change in % (year to date)

 +2.1
Revenue (€bn)2330.4341.7300.6

Year-on-year change in % (year to date)

 +6.5
Tax revenue (€bn)309.4321.3277.8

Year-on-year change in % (year to date)

 +5.5

Fiscal balance (€bn)

5.0-1.9-3.8

Financing/use of surplus:

-5.01.93.8

Cash resources (€bn)

--46.8

Seigniorage (€bn)

0.30.30.2

Movements in reserves3 (€bn)

-5.31.60.0
Net borrowing4 (€bn)0.00.0-43.2
Any discrepancies in totals are due to rounding.
1 As per accounts.
2 Excluding revenue and expenditure from internal offsetting
3 Negative values denote accumulation of reserves.
4 (-) debt repayment; (+) borrowing
Source: Federal Ministry of Finance

Revenue

Federal revenue for the January–November 2018 period totalled €300.6bn, up by 6.5% (€18.4bn) on the year. Tax revenue (including EU own resources) increased by 5.5% (€14.4bn). Tax revenue trends this year have been affected by various special factors. In 2017, approximately €7.3bn of nuclear fuel duty (including interest) had to be returned to energy supply companies following the Federal Constitutional Court’s ruling of 7 June 2017. In addition, transfers of GNI-based own resources to the EU have been up significantly in 2018, by approximately €5.8bn on the year.

Other revenue was 21.4% (€4bn) higher on the year in the January–November 2018 period, mainly due to an increase in allocations from the Bundesbank’s profits (allocations so far this year have totalled €1.9bn, an increase of €1.5bn on the year). In addition, revenue from the distance-based commercial vehicle toll increased by €0.5bn and profits from the Federation’s holdings were up by €0.3bn on the year.

Expenditure

Cumulative federal expenditure for the period from January to November 2018 totalled €304.4bn, an increase of 2.1% (€6.2bn) on the year. Federal spending is separated into consumption and investment expenditure. In the January–November 2018 period, consumption spending was 2.3% higher than in the same period last year. This can be attributed primarily to increases in military procurement spending (up by +10.1%) and in ongoing grants to public administrations (up by +18.1%). In the latter category, the Federation’s allocation of €2.8bn to the Energy and Climate Fund had the biggest impact on results. This category also includes an increase in federal grants to reimburse the Länder for social spending on basic income support for older people and for people with reduced earning capacity. These grants totalled roughly €900m in the fourth quarter of 2017, but the reimbursements were not paid until 2018. There was no such spending in the first quarter of 2017. Grants for other areas saw a below-average year-on-year rise in the January–November 2018 period, tempering the increase in consumption expenditure. Nevertheless, there was a marked +2.7% increase in social security spending during this period, mainly as a result of higher allocations to the general pension insurance system (up by +3.3%). Interest expenditure fell sharply on the year by 6.6% in the first eleven months of 2018. Investment spending totalled €27.2bn; this is approximately 68% of the target level for 2018. The budgeted amount includes a €2.4bn allocation to a special digital infrastructure fund. The Bundestag approved the bill for the fund on 29 November. The final consultation on the bill in the Bundesrat took place on 14 December. If the law enters into force before the end of the year, the funds will be distributed in December. Investment spending remained steady on the year in the January–November 2018 period. Adjusted for the one-off allocation in August 2017 of €1bn to increase the equity of Deutsche Bahn AG, investment increased slightly on the year.

Fiscal balance

The federal budget recorded a deficit of €3.8bn for the period from January to November 2018.

Revenue and expenditure are subject to strong fluctuations over the course of the fiscal year and thus have an uneven effect on cash funds in individual months. Net borrowing also tends to fluctuate considerably over the course of the year. This means that the fiscal balance at this point in the year and the corresponding net borrowing figures are not reliable indicators of the end-of-year figures for the fiscal balance and net borrowing.

Trends in federal expenditure by function

Actual 2017

2018 target

Actual

Year-on-year

change (year to date)

January to

November 2017

January to

November 2018

in €m

share in %

in €m

share in %

in €m

in %

General public services77,00623.781,712 23.867,46069,497+3.0

Economic cooperation and development

8,3302.69,389 2.76,2896,675+6.1

Defence

36,41911.238,002 11.132,09233,621+4.8

Government, central administration

15,8584.917,388 5.115,06015,810+5.0

Revenue administration

4,5541.44,891 1.44,0894,203+2.8
Education, science, research, cultural affairs22,9847.124,207 7.018,57618,540 -0.2

Support for school and university students and training programme participants

3,6031.13,993 1.23,0832,991 -3.0

Science, research and development outside of higher education institutions

12,2683.813,290 3.99,0999,602+5.5
Social security, family affairs and youth, labour market policy168,80151.9173,006 50.4161,076165,159+2.5

Social insurance including unemployment insurance

111,70334.3115,063 33.5109,003111,964+2.7

including:

       

General pension insurance

82,381 25.385,316 24.881,27383,995+3.3

Labour market policy

37,59011.636,728 10.734,39233,654 -2.1

including:

       

Basic income support for jobseekers under Book II of the Social Code

21,4236.620,400 5.919,93319,125 -4.1

Government housing and heating allowances under Book II of the Social Code

6,7532.16,900 2.06,1966,506+5.0

Family assistance, welfare services, etc.

8,2962.58,946 2.67,6618,351+9.0

Social benefits for the consequences of war and political events

1,9300.62,082 0.61,7671,741 -1.5

Health, environment, sport, recreation

2,3030.72,856 0.81,8111,877+3.6
Housing, regional planning and local community services2,9230.93,549 1.02,5792,536 -1.7

Housing, home ownership savings premium

2,2670.72,580 0.82,2072,132 -3.4
Food, agriculture and forestry1,0680.31,233 0.4714592 -17.0
Energy and water supply, trade and services4,1951.35,481 1.63,6143,200 -11.5

Regional support measures

7260.2910 0.3557497 -10.7

Mining, manufacturing and construction

1,5320.51,491 0.41,4711,332 -9.5
Transport and communication21,2286.521,140 6.218,34117,992 -1.9

Roads

9,4842.910,081 2.97,9668,762+10.0

Railways and public transport

7,0472.26,162 1.86,2685,360 -14.5
Financial management30,5329.430,416 8.924,38025,323+3.9

Interest expenditure and borrowing-related expenditure

17,5005.418,107 5.317,42616,278 -6.6
Total expenditure1325,380100.0343,600 100.0298,223304,392+2.1
1 Excluding expenditure from internal offsetting.
Source: Federal Ministry of Finance

Trends in federal expenditure by economic category

Actual 2017

2018 target

Actual

Year-on-year

change (year to date)

January to

November 2017

January to

November 2018

in €m

share in %

in €m

share in %

in €m

in %

Consumption expenditure291,36789.5304,48388.6270,987277,152+2.3

Human resources expenditure

31,8249.833,3979.730,12330,438+1.0

Salary payments

23,1827.124,7967.221,84121,988+0.7

Pensions

8,6432.78,6022.58,2828,450+2.0

Operating expenditure

28,6938.830,5878.923,32724,274+4.1

Administrative expenditure (excl. human resources)

1,5710.51,5880.51,3211,394+5.5

Military procurement

10,6253.312,3163.68,0358,843+10.1

Other

16,4985.116,6824.913,97114,037+0.5

Interest expenditure

17,4975.418,0985.317,42216,274 -6.6

Ongoing grants and subsidies

212,58265.3221,49164.5199,410205,407+3.0

to public administrations

24,8147.628,6918.422,19226,212+18.1

to other areas

187,76857.7192,80056.1177,218179,195+1.1

including:

       

Companies

28,5278.830,3628.825,32824,817 -2.0

Pensions, assistance, etc.

30,1279.329,3918.628,06427,498 -2.0

Social security funds

117,49536.1120,19035.0114,054117,156+2.7

Other asset transfers

7700.29100.3705759+7.7

Investment expenditure

34,01310.539,80311.627,23627,240+0.0

Financial assistance

24,1707.429,3128.519,34219,056 -1.5

Grants and subsidies

21,4216.627,1317.917,13518,133+5.8

Loans, guarantees

1,2210.41,6180.5936788 -15.8

Acquisition of holdings; capital contributions

1,5280.55640.21,270136 -89.3

Fixed asset investment

9,8433.010,4903.17,8948,183+3.7

Construction projects

7,6312.37,7422.36,2936,598+4.8

Acquisition of movable assets

1,7130.51,9540.61,2091,160 -4.1

Acquisition of real property

4990.27940.2392426+8.7
General reduction/increase in expenditure00.0-686-0.200X
Total expenditure1325,380100.0343,600100.0298,223304,392+2.1
1 Excluding expenditure from internal offsetting.
Source: Federal Ministry of Finance

Trends in federal revenue

Actual 2017

2018 target

Actual

Year-on-year

change (year to date)

January to

November 2017

January to

November 2018

in €m

share in %

in €m

share in %

in €m

in %

I. Tax revenue

309,37693.6321,30794.0263,403277,825+5.5

Federal share of joint taxes:

252,63076.5263,90077.2217,577228,804+5.2

Income tax and corporation tax (incl. final withholding tax on interest and capital gains)

136,68541.4144,50342.3112,086120,815+7.8

of which:

       

Wages tax

83,12125.287,74125.770,87475,641+6.7

Assessed income tax

25,2567.626,1737.718,68818,949+1.4

Non-assessed taxes on earnings

10,4513.210,9503.29,38110,586+12.8

Final withholding tax on interest and capital gains

3,2271.03,4741.02,8252,849+0.8

Corporation tax

14,6294.416,1654.710,31812,790+24.0

Value added taxes (VAT)

114,00534.5117,42634.4103,957106,480+2.4

Trade tax apportionment

1,9410.61,9710.61,5351,509 -1.7

Energy duty

41,02212.441,30012.132,50832,368 -0.4

Tobacco duty

14,3994.414,1604.112,52512,473 -0.4

Solidarity surcharge

17,9535.418,7505.515,10216,044+6.2

Insurance tax

13,2694.013,6704.012,61113,128+4.1

Electricity duty

6,9442.16,9302.06,2896,337+0.8

Motor vehicle tax

8,9482.79,0102.68,3838,507+1.5

Nuclear fuel tax

-7,262-2.200.0-7,2620X

Alcohol duty

2,0960.62,1020.61,9041,917+0.7

Coffee duty

1,0570.31,0550.3949931 -1.9

Aviation tax

1,1210.31,1750.31,0001,057+5.7
Deductions       

Supplementary grants to Länder

9,229X8,545X7,0936,724 -5.2

EU own resources (GNI-based)

14,258X22,610X12,63718,417+45.7

EU own resources (VAT-based)

2,362X2,510X2,1652,184+0.9

Grants to Länder for public transport

8,348X8,498X7,6527,790+1.8

Grants to Länder for motor vehicle tax and HGV toll

8,992X8,992X8,9928,992+0.0

II. Other revenue

21,0256.420,3606.018,76022,767+21.4

Revenue from economic activity

3,8681.25,1721.53,4935,350+53.2

Interest revenue

3440.13090.1270273+1.1

Loan repayments, holdings, privatisation proceeds

1,7860.51,9390.61,3241,972+48.9

Total revenue1

330,401100.0341,667100.0282,163300,592+6.5
1 Excluding revenue from internal offsetting.
Source: Federal Ministry of Finance

Tax revenue in November 2018

2018 trends in tax revenue (excluding local authority taxes)1

2018

November

Year-on-year
change 

January

to November

Year-on-year

change  

2018 estimates4

Year-on-year
change

in €m

in %

in €m

in %

in €m

in %

Joint taxes      
Wages tax216,265+7.8182,207+6.7207,800+6.3
Assessed income tax-396X44,588+1.460,200+1.3
Non-assessed taxes on earnings823 -5.321,178+12.723,200+10.9

Final withholding tax on interest and capital gains

(including the former withholding tax on interest income)

375 -25.16,475+0.97,491+2.2
Corporation tax-231X25,580+24.033,330+13.9
Value added taxes (VAT)20,784+1.4213,911+3.2234,650+3.7
Trade tax apportionment242 -5.03,879+4.74,880+4.2
Increased trade tax apportionment67+16.23,145+4.04,010+2.9
Total joint taxes37,929+3.9500,964+5.6575,561+5.1
Taxes accruing to the Federation      
Energy duty3,308 -4.732,368 -0.441,100+0.2
Tobacco duty1,203 -12.712,473 -0.414,300 -0.7
Alcohol duty (formerly spirits duty)159 -6.11,915+0.72,120+1.3
Insurance tax915+11.913,128+4.113,700+3.2
Electricity duty562+0.76,337+0.87,000+0.8
Motor vehicle tax741+6.68,507+1.59,010+0.7
Aviation tax117+1.41,057+5.81,175+4.9
Nuclear fuel duty0X0X0X
Solidarity surcharge978+7.816,044+6.218,800+4.7
Other taxes accruing to the Federation126 -1.71,298 -0.71,447+0.1
Total taxes accruing to the Federation8,108 -1.693,127+10.4108,652+8.7
Taxes accruing to the Länder      
Inheritance tax463 -11.96,156+9.76,470+5.8
Real property transfer tax1,233+10.112,921+7.113,840+5.3
Betting and lottery tax181+14.31,745+3.41,872+1.9
Beer duty56+16.2618+1.4670+0.9
Other taxes accruing to the Länder24+36.5428+3.7464+2.9
Total taxes accruing to the Länder1,957+4.721,868+7.323,316+5.0
EU own resources      
Customs duties472+18.44,640 -0.05,050 -0.2
VAT-based own resources201+2.12,184+0.92,410+2.0
GNI-based own resources1,860+17.818,417+45.721,180+48.6
Total EU own resources2,534+16.525,241+29.828,640+32.1
Federation321,723+1.0279,347+5.6323,820+4.7
Länder321,114+3.0274,313+4.9311,576+4.4
EU2,534+16.525,241+29.828,640+32.1
Local authorities’ share of income and value added tax3,096+10.041,698+8.148,542+7.5
Total tax revenue (excluding local authority taxes)48,466+3.1620,599+6.3712,579+5.6
1 Methodology: Total cash income from the various taxes is recorded and allocated to the various government levels as stipulated by law. Tax amounts actually received in the current month by individual government levels may differ from the target amounts for technical reasons.
2 After deduction of child benefit refunds by the Federal Central Tax Office
3 After supplementary grants; any discrepancies with the table on trends in federal revenue are due to the methodology used (see footnote 1).
4 Results of the Working Party on Tax Estimates of November 2018.
Source: Federal Ministry of Finance

Total tax revenue (excluding local authority taxes) was up by 3.1% in November 2018 over the same month last year. Revenue from joint taxes rose by 3.9%. Revenue from wages tax posted a particularly significant increase. Growth for revenue from VAT was sluggish. Receipts from taxes accruing solely to the Federation fell slightly compared with the same month last year. Receipts from taxes accruing solely to the Länder were up 4.7% on the year.

EU own resources

Transfers of own resources to the EU, including customs duties, stood at approximately €2.5bn in November 2018, up 16.5% over the same month last year. Transfers to the EU are based on the planned financial framework for 2018. Fluctuations over the course of the year depend on the EU’s financing needs at any given time.

Cumulative overview of the January-November 2018 period

In the first eleven months of 2018, total tax receipts (excluding local authority taxes) were up by 6.3% on the year. Broken down by category, revenue from joint taxes was up by 5.6%, receipts from federal taxes were up by 10.4%, and the yield from Länder taxes increased by 7.3%.

Distribution among the Federation, Länder and local authorities

The Federation’s tax receipts (after accounting for supplementary federal grants to the Länder) were up by 1.0% on the year in November 2018. Länder tax receipts recorded a year-on-year gain of 3.0%. These results were driven by the increased share of revenue from joint taxes allocated to the Federation and the Länder: the Federation’s share increased by 3.2% and the share of the Länder rose by 3.7%. The growth in the Federation’s tax receipts was tempered by a fall in revenue from Federation-only taxes and by higher transfers of EU own resources. The local authorities’ take from joint taxes was up by 10.0% on the year.

Joint taxes

Wages tax

Wages tax revenue again posted strong growth in November 2018, with gross revenue climbing by 6.1% on the year. This reflected continuing employment growth and rising incomes in Germany. Child benefit payments – which are financed from wages tax receipts – fell by 2.3% on the year in November 2018. One Land is experiencing problems with preparing the underlying data for child benefit payments, which continues to skew this figure. However, this effect had no impact on cash receipts. On balance, cash receipts from wages tax increased by 7.8% on the year in November 2018. In cumulative terms, cash receipts from wages tax were up by 6.7% on the year in the first eleven months of the year.

Corporation tax

Corporation tax refunds totalling approximately €0.2bn were paid out in November, generally a low-revenue month for this tax. In November of the previous year, refunds amounted to roughly €0.4bn. This fluctuation is within the usual range of variation that occurs as part of assessment activity. Taken cumulatively, cash receipts from corporation tax were up by 24.0% on the year for the eleven months from January to November 2018.

Assessed income tax

Like corporation tax revenue, receipts from assessed income tax in November were driven mainly by assessment activity and posted weak year-on-year growth. Gross receipts from assessments were up by €0.1bn on the year in November 2018. However, employee refunds were also higher on the year, and after these are subtracted from the gross figure, net cash receipts from assessed income tax totalled approximately €0.4bn. In cumulative terms, cash receipts from assessed income tax totalled €44.6bn in the eleven-month period from January to November, an increase of 1.4% on the year.

Non-assessed taxes on earnings

November 2018 saw a 7.9% year-on-year drop in gross receipts from non-assessed taxes on earnings. Combined with the fall in refunds paid out by the Federal Central Tax Office, which are financed from this revenue, cash receipts from non-assessed taxes on earnings were down by 5.3% in November 2018. Overall, the trend in revenue from non-assessed taxes on earnings has been very volatile over the course of the year. The cumulative result provides a more solid basis for analysis: here, cash receipts from non-assessed taxes on earnings were up by 12.7% on the year in the January–November period.

Final withholding tax on interest and capital gains

Revenue from final withholding tax on interest and capital gains fell by 25.1% on the year in November. In the eleven months from January to November 2018, cash receipts from final withholding tax on interest and capital gains were up by 0.9% on the year.

Value added taxes (VAT)

The yield from value added taxes posted a rise of 1.4% on the year in November 2018. Revenue from domestic VAT fell slightly, by 4.2% in year-on-year terms, while import VAT revenue was up by 20.2%. Cumulative cash receipts from value added taxes were up by 3.2% on the year in the eleven-month period from January to November 2018.

Taxes accruing to the Federation

In November 2018, revenue from federal taxes was 1.6% below last year’s level, due to a year-on-year fall in revenue from tobacco duty (-12.7%), energy duty (-4.7%), and alcohol duty (-6.1%). Solidarity surcharge, motor vehicle tax, electricity duty and insurance tax all posted year-on-year revenue gains in November 2018 (up by 7.8%, 6.6%, and 11.9%, respectively). Trends in revenue from other taxes had only a minor impact on the overall results for federal taxes.

Taxes accruing to the Länder

The yield from taxes accruing solely to the Länder was up by 4.7% on the year in November 2018. This outcome was driven mainly by a year-on-year increase in receipts from real property transfer tax (up by 10.1%) and betting and lottery tax (up by 14.3%). Revenue gains were also recorded for fire protection tax (up by 35.8%) and beer duty (up by 16.2%). Receipts from inheritance tax were down 11.9% on the year.

Borrowing and guarantees

Debt trends for the Federation and its special funds (in €m)

Debt level

Borrowing
(increase)

Debt repayment
(decrease)

Debt level 

Change in debt level
(balance)

31 October 2018

November 2018

November 2018

30 November 2018

November 2018

Budget borrowing1,072,77113,689-1111,086,34913,578

broken down by purpose

Federal budget1,031,04813,689-1111,044,62613,578
Financial Market Stabilisation Fund22,618--22,618-
Investment and Redemption Fund19,1050-19,1050

broken down by debt type

Federal securities1,060,15113,689-111,073,82913,678

Federal bonds

706,5084,062-710,5704,062

30-year federal bonds

216,8571,129-217,9861,129

10-year federal bonds

489,6512,933-492,5842,933

Inflation-linked federal securities

64,755-89-64,666-89

30-year inflation-linked federal bonds

7,724-6-7,718-6

10-year inflation-linked federal bonds

57,031-83-56,948-83

Federal notes

180,0932,355-182,4482,355

Federal Treasury notes

93,3673,409-96,7763,409

Treasury discount papers issued by the Federation

14,0263,953-17,9793,953
Other federal securities1,401--111.390-11
Securitised loans8,145--1008,045-100
Other loans and ordinary debts4,475--4,475-

broken down by maturity

up to one year151,747  155,3223,575
one to four years339,566  342,0662,500
over four years581,459  588,9627,502

Additional information1

Liabilities from the indexing of inflation-linked federal securities4,664  4,968304
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)3,516  3,516-

1 Liabilities resulting from indexing include the amount by which the original issuance price has increased due to inflation between the start date and the specified reference date. In contrast, reserves include only the increases that are noted on coupon payment dates (15 April of every year) (section 4(1) of the Final Payment Financing Act) and on reopening dates for inflation-linked securities (section 4(2) of the Final Payment Financing Act).

Any discrepancies in totals are due to rounding.

Source: Federal Ministry of Finance

Guarantees

  

Authorised

amount

Amount allocated

as of 30 September 2018

Amount allocated

as of 30 September 2017

in €bn

Export credit guarantees153.0120.3121.1
Loans to foreign debtors, foreign direct investment, EIB loans65.042.844.0
Financial cooperation projects28.521.117.9
Food stockpiling0.70.00.0
Domestic guarantees158.0101.1103.2
International financial institutions66.060.060.0
Treuhandanstalt successor organisations1.01.01.0
Interest compensation guarantees15.015.015.0

Calendar

Publication schedule1 of the monthly reports
Monthly reportReporting periodPublication date

January 2019 issue

December 201831 January 2019

February 2019 issue

January 201921 February 2019

March 2019 issue

February 201921 March 2019

April 2019 issue

March 201923 April 2019

May 2019 issue

April 201920 May 2019

June 2019 issue

May 201920 June 2019

July 2019 issue

June 201922 July 2019

August 2019 issue

July 201922 August 2019

September 2019 issue

August 201920 September 2019

October 2019 issue

September 201921 October 2019

November 2019 issue

October 201921 November 2019

December 2019 issue

November 201920 December 2019

1 In accordance with the IMF’s Special Data Dissemination Standard Plus (SDDS Plus); see http://dsbb.imf.org

Source: Federal Ministry of Finance

Key dates on the fiscal and economic policy agenda

17–18 January 2019

Financial Dialogue in Beijing

21–22 January 2019

Eurogroup and ECOFIN Council meetings in Brussels

11–12 February 2019

Eurogroup and ECOFIN Council meetings in Brussels

11–12 March 2019

Eurogroup and ECOFIN Council meetings in Brussels

5–6 April 2019

Eurogroup und informal ECOFIN Council meetings in Bucharest

11–12 April 2019

Meeting of G20 finance ministers and central bank governors in Washington, D.C.

12–14 April 2019

Spring Meetings of the IMF and World Bank in Washington, D.C.
Click here for the full schedule (only in German)

Share and print page