By clicking on “Agree”, you enable us to gather statistical information that will help us better understand how visitors use our website.
This is done
✓ anonymously and without collecting personal data,
✓ without cookies,
✓ on servers in Germany
✓ and without any data being transmitted to third parties.
You can also revoke your consent at any time on our
Privacy policy page.
Federal budget trends up to and including November 2020
Table: Trends in the federal budget
Expenditure (€bn)³
343.2
508.5
397.6
Year-on-year change in % (year to date)
+26.9
Revenue (€bn)⁴
356.5
290.4
264.0
Year-on-year change in % (year to date)
-13.8
Tax revenue (€bn)
329.0
264.4
239.7
Year-on-year change in % (year to date)
-14.7
Balance of pass-through funds (€bn)
0.0
0.0
0.0
Fiscal balance (€bn)
13.3
-218.1
-133.6
Financing/use of surplus:
-13.3
218.1
133.6
Cash resources (€bn)
-
-
31.5
Seigniorage (€bn)
0.2
0.3
0.3
Movements in reserves⁵ (€bn)
-13.5
0.0
0.0
Net borrowing⁶ (€bn)
0.0
217.8
101.9
Any discrepancies in totals are due to rounding. ¹ Second supplement to the 2020 federal budget (Federal Law Gazette I No 35, p. 1669). ² As per accounts. ³ With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. ⁴ With the exception of revenue from loans on the credit market, withdrawals from reserves, revenue from cash surpluses and seigniorage. Excluding revenue from internal offsetting. ⁵ Negative values denote accumulation of reserves. ⁶ (-) debt repayment; (+) borrowing
Source: Federal Ministry of Finance
Federal revenue in the period from January to November 2020 totalled approximately €264.0bn, down by 13.8% (roughly €42.2bn) on the year. This decline is due primarily to the effects of the Covid-19 pandemic and the associated tax-related assistance measures that have been adopted to help manage the crisis. Tax receipts (also taking into account transfers of own resources to the EU) declined by 14.7% (roughly €41.4bn) compared with the same period in 2019. Receipts from value added taxes as well as from income and corporation tax have been particularly affected, falling by €22.0bn and €10.9bn, respectively.
The category of “other revenue” was down by 3.3% (roughly €0.8bn) on the year in the January–November period. This can be attributed to lower revenue from business activities as well as from claims arising from guarantees.
By adopting two supplementary budgets, the German government has taken decisive action in response to the challenges posed by the coronavirus pandemic both to health and to the economy. The additional expenditure contained in the supplementary budgets now strongly influences the structure of federal spending. Federal expenditure in the January–November 2020 period totalled approximately €397.6bn, an increase of 26.9% (about €84.2bn) over the same period last year. A breakdown by economic category shows that the increase in spending during the January–November period was mainly due to growth in consumption spending, which was up by 27.1% (approximately €76.8bn). Ongoing grants to public administrations made up most of this rise. This includes grants to the Energy and Climate Fund totalling roughly €27.6bn, which will be used to finance measures contained in the stimulus package. Ongoing grants to the Länder were significantly higher on the year as well. This category includes roughly €9.0bn in compensation payments under section 21 of the Hospital Financing Act (Krankenhausfinanzierungsgesetz), out of the €11.5bn earmarked for this purpose for 2020. Spending on ongoing subsidies to companies also increased significantly. By the end of November 2020, approximately €14.4bn in immediate assistance for small companies and self-employed individuals affected by the fallout from the Covid-19 pandemic had been disbursed, out of the €18.0bn earmarked for this purpose in the second supplementary budget. Approximately €5.7bn in additional funds for ongoing grants to social institutions to fight the coronavirus have been spent (2020 target: €9.1bn). Grants to social security funds were up by €9.2bn (7.6%) on the year. This includes disbursements to the health fund and the long-term care insurance compensation fund totalling €5.3bn, the entire amount earmarked for these funds. The increase in consumption spending was tempered by a decline in interest expenditure, which was down by 58.8% (about €7.0bn) on the year.
Investment spending totalled approximately €37.0bn in the January–November period, an increase of 24.9% (roughly €7.4bn) over the same period last year. The main factor driving this increase was liquidity assistance provided to the Federal Employment Agency (roughly €6.5bn so far this year). Over the January–November period, the figures for grants and subsidies constituting investments were subject to effects that basically cancelled each other out. On the one hand, grants to the Länder declined by approximately €3.5bn, primarily as a result of the discontinuation of compensation payments from the Federation to the Länder for purposes including social housing. This is part of a reorganisation of financial relations between the federal government and the Länder that took effect at the start of 2020. Instead of receiving compensation payments, the Länder now receive a higher share of VAT revenue. On the other hand, grants to special funds (for digital infrastructure and the expansion of childcare facilities) increased by a total of €1.4bn, and subsidies to other areas (including federal subsidies towards construction costs for maintaining railway infrastructure) rose by approximately €2.2bn on the year. In the January–November 2020 period, spending on the acquisition of movable assets was 27.7% (about €0.5bn) higher than in the same period last year. Spending on construction projects was slightly down on the year, by 2.4%.
The federal budget posted a deficit of €133.6bn for the period from January to November 2020.
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 any given 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. This is especially the case in the current circumstances.
Trends in federal expenditure by function
Trends in federal expenditure by function
Actual2019
2020target¹
Actual
Year-on-yearchange
(year to date)
January to
November2019
January to
November2020
in €m
share in %
in €m
share in %
in €m
in %
General public services
88,153
25.7
98,029
19.3
76,461
81,034
+6.0
Economic cooperation and development
9,994
2.9
12,326
2.4
7,177
8,551
+19.1
Defence
41,944
12.2
45,292
8.9
36,746
38,540
+4.9
Government, central administration
18,561
5.4
20,611
4.1
17,382
17,925
+3.1
Revenue administration
5,115
1.5
5,612
1.1
4,605
4,795
+4.1
Education, science, research, cultural affairs
23,825
6.9
30,316
6.0
19,136
20,540
+7.3
Support for school and university students and training programme participants
3,367
1.0
6,417
1.3
2,853
3,163
+10.9
Science, research and development outside of higher education institutions
13,567
4.0
16,237
3.2
10,205
11,435
+12.0
Social security, family affairs and youth, labour market policy
177,133
51.6
25.5435
50.2
169,865
207,410
+22.1
Social insurance including unemployment insurance
118,997
34.7
132,543
26.1
116,081
126,394
+8.9
of which:
General pension insurance
89,156
26.0
93,047
18.3
87,870
91,652
+4.3
Labour market policy
36,427
10.6
49,180
9.7
33,250
37,039
+11.4
of which:
Basic income support for jobseekers under Book II of the Social Code
20,025
5.8
26,400
5.2
18,621
19,188
+3.0
Government housing and heating allowances under Book II of the Social Code
6,458
1.9
12,400
2.4
5,972
8,951
+49.9
Family assistance, welfare services, etc.
9,252
2.7
10,619
2.1
8,593
9,538
+11.0
Social benefits for the consequences of war and political events
1,902
0.6
1,947
0.4
1,818
1,842
+1.3
Health, environment, sport, recreation
2,967
0.9
25,255
5.0
2,265
17,334
+665.2
Housing, urban development, regional planning and local community services
3,194
0.9
2,576
0.5
2,760
1,288
-53.3
Housing, home ownership savings premium
2,380
0.7
1,425
0.3
2,264
782
-65.4
Food, agriculture and forestry
1,262
0.4
2,044
0.4
791
748
-5.4
Energy and water management, trade and services
4,026
1.2
15,393
3.0
3,465
4,758
+37.3
Regional support measures
948
0.3
3,071
0.6
663
1,012
+52.7
Mining, manufacturing and construction
1,211
0.4
2,993
0.6
1,248
2,263
+81.4
Transport and communication
22,243
6.5
28,925
5.7
19,021
18,708
-1.6
Roads
10,888
3.2
10,125
2.0
9,427
7,915
-16.0
Railways and public transport
6,794
2.0
13,927
2.7
5,527
6,459
+16.9
Financial management
20,382
5.9
50,558
9.9
19,651
45,783
+133.0
Interest expenditure and borrowing-related expenditure
12,084
3.5
9,566
1.9
12,045
4,935
-59.0
Total expenditure²
343,186
100.0
508,530
100.0
313,415
397,602
+26.9
1 Second supplement to the 2020 federal budget (Federal Law Gazette I No 35, p. 1669).
2 With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting.
Trends in federal expenditure by economic category
Trends in federal expenditure by economic category
Actual 2019
2020 target¹
Actual
Year-on-yearchange
(year to date)
January to
November2019
January to
November2020
in €m
share in %
in €m
share in %
in €m
in %
Consumption expenditure
305,120
88.9
439,587
86.4
283,795
360,611
+27.1
Human resources expenditure
34,185
10.0
35,413
7.0
32,365
33,305
+2.9
Salary payments
25,066
7.3
26,237
5.2
23,616
24,549
+4.0
Pensions
9,119
2.7
9,175
1.8
8,749
8,756
+0.1
Operating expenditure
33,135
9.7
39,150
7.7
26,866
28,656
+6.7
Maintenance of immovable property
1,729
0.5
1,637
0.3
1,489
1,527
+2.6
Military procurement
14,098
4.1
17,156
3.4
10,715
12,141
+13.3
Other
17,308
5.0
20,357
4.0
14,662
14,988
+2.2
Interest expenditure
11,911
3.5
9,557
1.9
11,857
4,891
-58.8
Ongoing grants and subsidies
224,963
65.6
353,997
69.6
211,795
292,695
+38.2
to public administrations
27,739
8.1
79,516
15.6
25,968
72,426
+178.9
to other areas
197,224
57.5
274,480
54.0
185,827
220,269
+18.5
of which:
Companies
29,955
8.7
77,473
15.2
26,473
43,091
+62.8
Pensions, benefits, etc.
29,150
8.5
36,588
7.2
27,183
28,557
+5.1
Social security funds
125,225
36.5
134,322
26.4
121,506
130,711
+7.6
Other asset transfers
926
0.3
1,471
0.3
912
1,064
+16.7
Investment expenditure
38,066
11.1
71,286
14.0
29,619
36,991
+24.9
Financial assistance
26,882
7.8
56,492
11.1
20,329
27,601
+35.8
Grants and subsidies
25,315
7.4
33,782
6.6
19,333
20,502
+6.0
Loans, guarantees
794
0.2
16,585
3.3
604
7,090
+1,073.8
Acquisition of holdings; capital contributions
774
0.2
6,125
1.2
391
9
-97.7
Fixed asset investment
11,183
3.3
14,794
2.9
9,291
9,391
+1.1
Construction projects
8,095
2.4
8,904
1.8
6,866
6,702
-2.4
Acquisition of movable assets
2,281
0.7
5,128
1.0
1,710
2,183
+27.7
Acquisition of real property
807
0.2
761
0.1
715
506
-29.2
General reduction/increase in expenditure
0
0.0
-2,344
-0.5
0
0
X
Total expenditure2
343,186
100.0
508,530
100.0
313,415
397,602
+26.9
1 Second supplement to the 2020 federal budget (Federal Law Gazette I No 35, p. 1669).
2 With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting.
Income tax and corporation tax
(incl. final withholding tax on interest and capital gains)
150,384
42.2
133,108
45.8
124,676
113,736
-8.8
of which:
Wages tax
93,311
26.2
90,206
31.1
79,972
75,687
-5.4
Assessed income tax
27,078
7.6
20,230
7.0
19,907
18,050
-9.3
Non-assessed tax on earnings
11,724
3.3
10,500
3.6
10,672
9,255
-13.3
Final withholding tax on interest and capital gains
2,264
0.6
2,772
1.0
2,066
2,648
+28.2
Corporation tax
16,007
4.5
9,400
3.2
12,060
8,095
-32.9
Value added taxes (VAT)
118,944
33.4
86,380
29.7
108,884
86,850
-20.2
Trade tax apportionment paid to Federation and Länder
1,947
0.5
1,512
0.5
1,540
1,238
-19.6
Energy duty
40,683
11.4
34,600
11.9
32,217
29,805
-7.5
Tobacco duty
14,257
4.0
14,350
4.9
12,793
12,655
-1.1
Solidarity surcharge
19,646
5.5
17,700
6.1
16,645
15,650
-6.0
Insurance tax
14,136
4.0
14,580
5.0
13,467
13,836
+2.7
Electricity duty
6,689
1.9
5,990
2.1
6,097
5,990
-1.8
Motor vehicle tax
9,372
2.6
9,495
3.3
8,747
8,837
+1.0
Alcohol duty including alcopops duty
2,119
0.6
2,115
0.7
1,904
1,884
-1.1
Coffee duty
1,060
0.3
1,035
0.4
951
951
+0.0
Aviation tax
1,182
0.3
300
0.1
1,062
260
-75.5
Sparkling wine duty and intermediate products duty
403
0.1
390
0.1
370
356
-3.8
Other taxes accruing to the Federation
2
0.0
1
0.0
3
2
-33.3
Deductions
Consolidation assistance for the Länder
800
X
1,067
X
800
1,067
+33.4
Supplementary grants to Länder
7,555
X
8,674
X
5,820
6,530
+12.2
EU own resources (GNI-based)
23,317
X
26,720
X
22,307
22,739
+1.9
EU own resources (VAT-based)
2,520
X
2,700
X
2,399
2,269
-5.4
Grants to Länder for public transport
8,651
X
8,957
X
7,930
10,710
+35.1
Grants to Länder for motor vehicle tax and HGV toll
8,992
X
8,992
X
8,992
8,992
+0.0
Other revenue
27,502
7.7
25,980
8.9
25,080
24,244
-3.3
Revenue from economic activity
6,376
1.8
6,699
2.3
5,965
5,688
-4.6
Interest revenue
309
0.1
262
0.1
241
300
+24.5
Loan repayments, holdings, privatisation proceeds
2,026
0.6
1,379
0.5
1,682
1,032
-38.6
Total revenue2
356,492
100.0
290,426
100.0
306,188
263,989
-13.8
1 Second supplement to the 2020 federal budget (Federal Law Gazette I No 35, p. 1669).
2 With the exception of revenue from loans on the credit market, withdrawals from reserves, revenue from cash surpluses and seigniorage. Excluding revenue from internal offsetting.
2020 trends in tax revenue (excluding local authority taxes)
2020 trends in tax revenue (excluding local authority taxes)¹
November
Year-on-year
change
JanuarytoNovember
Year-on-year
change
2020estimates⁴
Year-on-year
change
in €m
in %
in €m
in %
in €m
in %
Joint taxes
Wages tax²
16,425
-5.7
182,631
-5.3
208,350
-5.1
Assessed income tax
-128
X
42,474
-9.3
58,050
-8.9
Non-assessed taxes on earnings
1,505
+70.8
18,641
-12.8
19,950
-15.1
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
535
+25.3
6,019
+28.2
6,450
+25.3
Corporation tax
-130
X
16,190
-32.9
21,100
-34.1
Value added taxes (VAT)
18,511
-15.8
200,257
-9.8
218,750
-10.1
Trade tax apportionment paid to Federation and Länder
158
-28.5
2,989
-19.6
3,762
-20.0
Increased trade tax apportionment
0
X
134
-94.9
0
X
Total joint taxes
36,876
-8.1
469,335
-9.4
536,412
-9.9
Taxes accruing to the Federation
Energy duty
3,453
+2.2
29,805
-7.5
37,700
-7.3
Tobacco duty
1,052
-22.6
12,655
-1.1
14,360
+0.7
Alcohol duty
183
+16.5
1,873
-1.6
2,050
-3.2
Insurance tax
963
+2.1
13,836
+2.7
14,520
+2.7
Electricity duty
554
-3.5
5,990
-1.8
6,550
-2.1
Motor vehicle tax
656
-6.0
8,837
+1.0
9,500
+1.4
Aviation tax
11
-90.4
260
-75.5
270
-77.2
Solidarity surcharge
1,076
+2.8
15,650
-6.0
18,400
-6.3
Other taxes accruing to the Federation
132
+3.3
1,319
-0.4
1,442
-1.7
Total taxes accruing to the Federation
8,081
-3.8
90,226
-4.3
104,792
-4.3
Taxes accruing to the Länder
Inheritance tax
651
+14.6
7,784
+23.1
8,500
+21.7
Real property transfer tax
1,347
+2.5
14,541
+1.7
15,700
-0.6
Betting and lottery tax
178
+1.1
1,839
+1.6
2,000
+1.3
Beer duty
53
+9.7
520
-9.0
540
-12.5
Other taxes accruing to the Länder
24
+3.9
468
+6.0
510
+5.8
Total taxes accruing to the Länder
2,252
+5.8
25,152
+7.3
27,250
+5.4
EU own resources
Customs duties
335
-29.7
4,303
-8.5
4,650
-8.6
EU own resources (VAT-based)
77
-25.7
2,269
-5.4
2,480
-1.6
EU own resources (GNI-based)
4,347
+548.9
22,739
+1.9
25,620
+9.9
Total EU own resources
4,760
+280.3
29,311
-0.3
32,750
+5.9
Federation3
16,626
-31.0
241,049
-14.7
278,730
-15.3
Länder3
22,815
+1.9
275,962
-2.9
311,849
-3.9
EU
4,760
+280.3
29,311
-0.3
32,750
+5.9
Local authorities’ share of income tax and value added tax
3,344
-1.2
42,694
-3.4
49,775
-3.1
Total tax revenue (excluding local authority taxes)
47,545
-7.0
589,016
-8.0
673,104
-8.5
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 Revenue Estimates of November 2020.
Total tax revenue (excluding local authority taxes) was down by 7.0% in November 2020 compared with the same month last year. The economic effects of the coronavirus pandemic continued to have a negative impact on tax revenue. As in previous months, virus-related measures taken on the basis of secondary legislation also affected tax revenue. In November, incoming payments of previously deferred taxes exceeded the amount of newly granted deferrals, and this had a moderately positive impact on revenue. The temporary cuts in VAT rates in the second half of 2020 continue to reduce VAT receipts. Wages tax revenue also fell sharply. In November 2020, receipts from joint taxes were down by 8.1% on the year. Revenue from taxes accruing solely to the Federation declined by 3.8%. In contrast, receipts from taxes accruing solely to the Länder were up by 5.8% on the year due to strong growth in receipts from inheritance tax.
Transfers of own resources to the EU, including customs duties, climbed by about €3.5bn on the year in November 2020 to roughly €4.8bn, up from €1.3bn in November 2019. In October 2020, the EU approved an amending budget for the current year. In November, the outstanding own resources contributions resulting from the amending budget were settled retroactively for all prior months in 2020. This led to a peak in monthly payments of own resources. Monthly fluctuations occur over the course of the year based on the EU’s financing needs at any given time. In general, they are based on the annual EU budget that is in force for the respective year.
In the first eleven months of 2020, total tax receipts were down by 8.0% on the year. Revenue from joint taxes was down by 9.4%, and revenue from taxes accruing solely to the Federation was down by 4.3%. Revenue from taxes accruing solely to the Länder grew 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) fell by 31.0% on the year in November 2020. The Federation’s take from joint taxes declined by 17.8%. Among other factors, an amendment of the Financial Equalisation Act (Finanzausgleichsgesetz) under the Second Coronavirus Tax Assistance Act (Zweites Corona-Steuerhilfegesetz) has led to a significant year-on-year reduction in the Federation’s share of revenue from value added taxes and increased the shares of the Länder and local authorities accordingly. The purpose of this was to compensate the Länder for their lower tax revenue resulting from (a) the one-time bonus for families with children, which is financed from wages tax revenue, and (b) the temporary reduction in the VAT rate. The reduction in the VAT rate has caused revenue from value added taxes to fall significantly overall. In November, the Federation’s take from VAT revenue was down by 32.6% on the year. In addition to lower VAT revenue, another factor driving the sharp decline in the Federation’s tax receipts in November was the steep year-on-year increase in own resources payments to the EU. Receipts from taxes accruing solely to the Federation fell by 3.8%. Moreover, supplementary federal grants to the Länder were higher than in November 2019.
Länder tax receipts were up slightly by 1.9% on the year in November 2020. Even though overall VAT revenue fell by 15.8% on the year in November, Länder VAT revenue remained basically constant in year-on-year terms (down by just 0.4%). This is due to the reallocation of VAT revenue described above. However, the decline in wages tax receipts (due to the short-time work scheme) and the discontinuation of the increased trade tax apportionment had a negative impact on Länder tax revenue totals. Länder receipts from joint taxes were up slightly by 0.6% overall. In addition, the yield from taxes that accrue exclusively to the Länder posted a robust gain of 5.8%. The revenue from joint taxes allocated to local authorities was down by 1.2% on the year.
Cash receipts from wages tax were down markedly by 5.7% on the year in November 2020. Gross wages tax revenue was down by 2.9% on the year, due mainly to the effects of the partial lockdown. Company notifications regarding short-time work increased considerably in November. Child benefit payments – which are financed from wages tax receipts – rose by 6.4% on the year. In cumulative terms, cash receipts from wages tax were down by 5.7% on the year in the first eleven months of 2020.
Gross revenue from corporation tax totalled approximately ‑€130m in November, which is generally a low-revenue month for this tax. This was an improvement over the previous November, when gross revenue amounted to ‑€622m. Investment allowance payments hardly affected the overall result due to their low volume. As a result, cash receipts from corporation tax also amounted to roughly ‑€130m. Cumulatively, cash receipts from corporation tax were down by 32.9% on the year in the first eleven months of 2020.
As with corporation tax, assessment activity was the main factor driving the gross yield from assessed income tax in November. Gross receipts from this tax rose moderately to around €0.9bn, a year-on-year gain of 11.7%. Employee refunds were down by 4.0% on the year in November. After these are subtracted from the gross figure (along with investment allowance payments and owner-occupied homes premiums, which are insignificant in terms of amount), net receipts from assessed income tax totalled approximately ‑€128m in November 2020 (compared with ‑€263m in November 2019). In cumulative terms, cash receipts from assessed income tax were down by 9.3% on the year in the January–November period.
Gross receipts from non-assessed taxes on earnings were up by 57.5% on the year in November 2020. Refunds by the Federal Central Tax Office, which are financed from this revenue, totalled about €77m. As a result, cash receipts from non-assessed taxes on earnings were up by 70.8% over the previous November. Corporate shareholders’ meetings have been delayed this year due to the coronavirus pandemic, and as a result the timing of dividend payments decided at these meetings has shifted as well. Cumulatively, cash receipts from non-assessed taxes on earnings were down by 12.8% on the year in the first eleven months of 2020.
Final withholding tax on interest and capital gains
Revenue from final withholding tax on interest and capital gains grew by 25.3% on the year in November 2020. So far this year, monthly revenue from this tax has fluctuated significantly, as economic trends have apparently led investors to realise gains from their investments in securities. In cumulative terms, cash receipts from final withholding tax on interest and capital gains posted a gain of 28.2% in the January–November 2020 period.
Receipts from value added taxes fell by 15.8% on the year in November, with declining yields from both domestic VAT (down by 12.8%) and import VAT (down by 24.8%). This was mainly the result of the temporary cuts in VAT rates during the second half of 2020. Cumulative cash receipts from value added taxes were down by 9.8% on the year in the January–November period.
In November 2020, revenue from taxes accruing solely to the Federation was down by 3.8% compared with the same month last year. In the case of some taxes, the tax measures that were introduced to improve the liquidity of companies resulted in a decline in revenue. November saw revenue gains for energy duty (up by 2.2%), insurance tax (up by 2.1%) and alcohol duty (up by 16.5%). In contrast, receipts from electricity duty and tobacco duty were down on the year, by 3.5% and 22.6%, respectively. In the case of tobacco duty, roughly €230m in revenue from November was not posted until December. Global air traffic came to an almost complete halt as a result of the shutdown in spring 2020. This, together with tax deferrals, caused aviation tax revenue to plummet by 90.4% on the year in November. Revenue from the solidarity surcharge rose moderately by 2.8% as a result of higher receipts from income tax and corporation tax (which constitute its tax base). Trends in revenue from other taxes had only a minor impact on overall receipts from federal taxes. The cumulative yield from federal taxes was down by 4.3% on the year in the first eleven months of 2020.
Receipts from taxes accruing solely to the Länder were up by 5.8% on the year in November 2020. This was driven primarily by a significant increase in revenue from inheritance tax, which was up by 14.6%. Other taxes posting revenue growth included beer duty (up by 9.7%), betting and lottery tax (up by 1.1%), real property transfer tax (up by 2.5%) and fire protection tax (up by 3.9%). Cumulative receipts from Länder taxes rose by 7.3% on the year in the January–November 2020 period.
Debt trends for the federal budget and the Federation’s special funds November 2020
Debt trends for the federal budget and the Federation’s special funds November 2020
in €m
Debt level
Borrowing
(increase)
Debt repayment
(decrease)
Debt level
Change in debt level
(balance)
Interest
31 October 2020
November
November
30 November 2020
November
November
Total
1,215,401
19,212
-12,202
1,222,412
7,011
618
broken down by purpose
Federal budget
1,174,991
19,128
-12,202
1,181,918
6,926
618
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act)
22,733
-
-
22,733
-
-
Investment and Redemption Fund
16,035
-1
-
16,035
-1
-
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
1,642
85
-
1,727
85
-
broken down by debt type
Conventional federal securities
1,140,280
14,566
-12,032
1,142,815
2,534
353
30-year federal bonds
251,302
945
-
252,247
945
72
10-year federal bonds
528,591
3,402
-
531,993
3,402
199
Federal notes
153,227
1,105
-
154,332
1,105
38
Federal Treasury notes
86,195
1,678
-
87,872
1,678
26
Treasury discount papers issued by the Federation
120,965
7,437
-12,032
116,371
-4,594
19
Inflation-linked federal securities
57,838
466
-
58,304
466
104
30-year inflation-linked federal bonds
9,311
36
-
9,347
36
20
10-year inflation-linked federal bonds
48,527
430
-
48,957
430
84
Green federal securities
6,350
4,181
-
10,531
4,181
181
10-year green federal bonds
6,350
15
-
6,365
15
1
Green federal notes
-
4,166
-
4,166
4,166
180
Other federal securities
-
-
-
-
-
-
Securitised loans
6,460
-
-170
6,290
-170
-20
Other loans and ordinary debts
4,474
-
-
4,474
-
-
Additional information
Liabilities from the indexing of inflation-linked federal securities1
3,515
3,583
68
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)2
3,529
3,554
25
-
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.
2 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).
Trends in refinancing the special funds that provide loans to federal public institutions in November 2020
Trends in refinancing the special funds that provide loans to federal public institutions in November 2020
in €m
Total
63,282
2,750
-
66,032
2,750
42
broken down by purpose
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)1
30,000
-
-
30,000
-
-
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)2
33,282
2,750
-
36,032
2,750
42
1 Under section 9 (5) of the Stabilisation Fund Act, the Federal Ministry of Finance is empowered to borrow up to €30bn for the Financial Market Stabilisation Fund so that the Fund can grant loans to resolution authorities for the purpose of refinancing (as per section 8 (10) of the Stabilisation Fund Act) assets that they have taken over. Such borrowing is neutral overall in terms of debt, because it replaces the funds that resolution authorities would otherwise have to borrow on the market. However, it does increase the debt level in federal securities.
2 Under section 24 (1) in conjunction with section 23 of the Stabilisation Fund Act, the Federal Ministry of Finance is authorised to borrow up to €100bn for the Economic Stabilisation Fund for the purpose of granting loans. Under section 23 of the Stabilisation Fund Act, the Economic Stabilisation Fund can grant loans to KfW for the purpose of refinancing the special programmes assigned to it by the federal government in response to the coronavirus crisis.