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Any discrepancies in totals are due to rounding. ¹ As per accounts. 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. ³ 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. ⁴ Negative values denote accumulation of reserves. ⁵ (-) debt repayment; (+) borrowing Source: Federal Ministry of Finance
Federal revenue in January 2021 totalled approximately €17.1bn, down by 16.3% (roughly €3.3bn) compared with January 2020. 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 15.5% (roughly €2.8bn) compared with the same period in 2020. Receipts from value added taxes as well as from income tax and corporation tax have been particularly affected, falling by roughly €2.0bn and €1.1bn, respectively.
The category of “other revenue” recorded a drop of 22.8% (about €0.5bn) on the year in January. This was mainly due to a decline in administrative fines paid to the Federal Cartel Office.
In 2020, extraordinary measures were taken to fight the coronavirus pandemic and to mitigate its economic and social consequences. Budget execution in 2021 will also be heavily influenced by measures to counteract the pandemic and its effects.
Federal expenditure in January 2021 totalled €54.2bn, up by 33.9% (€13.7bn) compared with January 2020. A breakdown by economic category shows that higher spending in January was mainly due to growth in consumption spending, which was up by 28.6% (approximately €10.9bn). Ongoing grants to social security funds, which were up by €9.1bn (51.1%) on the year, accounted for the bulk of this increase. This includes roughly €5.5bn in disbursements to the health fund to cover costs caused by the SARS-CoV-2 pandemic. This means that about ¾ of the budgeted funds (about €7.7bn) have been disbursed. These grants also include €3.0bn in disbursements to the health fund’s liquidity reserves for a programme to future-proof hospitals; this is the full amount that was budgeted for this purpose. The increase in consumption spending was tempered by a decline in interest expenditure, which was down by 21.1% (about €1.0bn) on the year.
Investment spending totalled approximately €5.4bn in January, an increase of 115.5% (roughly €2.9bn) over the same period last year. The main factor driving this increase was liquidity assistance provided to the Federal Employment Agency (roughly €2.9bn so far this year). In contrast, fixed asset investment was down by 55.2% (about €0.4bn) due to a decline in spending on construction projects.
The federal budget recorded a deficit of €37.1bn in January 2021.
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 at the beginning of the year and under the prevailing circumstances.
Trends in federal expenditure by function
Trends in federal expenditure by function
General public services
95,479
21.6
103,911
20.8
7,789
8,350
+7.2
Economic cooperation and development
12,127
2.7
12,324
2.5
1,048
1,226
+17.0
Defence
45,471
10.3
47,019
9.4
3,801
3,823
+0.6
Government, central administration
19,199
4.3
22,707
4.6
1,821
1,903
+4.5
Revenue administration
5,342
1.2
5,922
1.2
395
455
+15.2
Education, science, research, cultural affairs
28,645
6.5
30,809
6.2
1,263
1,350
+6.9
Support for school and university students and training programme participants
6,045
1.4
5,162
1.0
466
521
+11.8
Science, research and development outside of higher education institutions
15,236
3.4
18,207
3.7
577
560
-3.0
Social security, family affairs and youth, labour market policy
218,365
49.4
253,236
50.8
22,563
37,227
+65.0
Social insurance including unemployment insurance
129,829
29.4
134,149
26.9
17,418
23,836
+36.8
of which:
General pension insurance
93,004
21.1
97,401
19.5
14,149
14,743
+4.2
Health insurance
15,884
3.6
19,010
3.8
1,279
4,208
+228.9
Unemployment insurance
6,913
1.6
3,350
0.7
0
2,888
-
Labour market policy
40,876
9.3
45,360
9.1
2,938
3,353
+14.1
of which:
Basic income support for jobseekers under Book II of the Social Code
20,658
4.7
23,700
4.8
1,876
1,994
+6.3
Government housing and heating allowances under Book II of the Social Code
10,097
2.3
11,200
2.2
435
719
+65.3
Family assistance, welfare services, etc.
10,343
2.3
11,392
2.3
905
933
+3.2
Social benefits for the consequences of war and political events
2,039
0.5
2,269
0.5
341
389
+13.9
Other social affairs
24,149
5.5
48,276
9.7
19
7,915
X
Health, environment, sport, recreation
19,001
4.3
13,923
2.8
262
1,287
+391.9
Housing, urban development, regional planning and local community services
1,783
0.4
2,972
0.6
57
60
+4.7
Housing, home ownership savings premium
893
0.2
1,675
0.3
52
50
-4.0
Food, agriculture and forestry
1,469
0.3
2,611
0.5
16
49
+204.1
Energy and water management, trade and services
5,509
1.2
14,780
3.0
2,027
789
-61.1
Regional support measures
1,400
0.3
2,968
0.6
1
1
-35.9
Mining, manufacturing and construction
2,316
0.5
1,491
0.3
1,955
285
-85.4
Transport and communication
22,961
5.2
33,483
6.7
1,458
1,054
-27.7
Roads
9,791
2.2
9,815
2.0
596
88
-85.3
Railways and public transport
8,156
1.8
16,321
3.3
466
440
-5.6
Financial management
48,585
11.0
42,895
8.6
5,045
4,054
-19.7
Interest expenditure and borrowing-related expenditure
6,457
1.5
5,787
1.2
4,762
3,756
-21.1
Total expenditure¹
441,798
100.0
498,620
100.0
40,480
54,218
+33.9
1 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
Consumption expenditure
391,450
88.6
410,463
82.3
37,983
48,837
+28.6
Human resources expenditure
35,409
8.0
35,959
7.2
3,809
3,936
+3.3
Salary payments
26,249
5.9
26,816
5.4
2,715
2,852
+5.0
Pensions
9,160
2.1
9,144
1.8
1,094
1,084
-0.9
Operating expenditure
36,370
8.2
44,827
9.0
1,908
1,965
+3.0
Maintenance of immovable property
1,801
0.4
1,164
0.2
106
40
-62.3
Military procurement
16,833
3.8
18,155
3.6
745
745
+0.0
Other
17,736
4.0
25,507
5.1
1,057
1,181
+11.7
Interest expenditure
6,413
1.5
5,781
1.2
4,762
3,756
-21.1
Ongoing grants and subsidies
312,053
70.6
322,303
64.6
27,235
38,845
+42.6
to public administrations
75,607
17.1
38,170
7.7
1,798
2,770
+54.1
to other areas
236,446
53.5
284,133
57.0
25,437
36,075
+41.8
of which:
Companies
49,569
11.2
76,283
15.3
4,011
4,717
+17.6
Pensions, benefits, etc.
30,735
7.0
36,535
7.3
2,870
3,042
+6.0
Social security funds
134,613
30.5
147,660
29.6
17,749
26,816
+51.1
Other asset transfers
1,205
0.3
1,593
0.3
269
334
+24.2
Investment expenditure
50,348
11.4
61,852
12.4
2,497
5,381
+115.5
Financial assistance
38,756
8.8
53,751
10.8
1,800
5,070
+181.7
Grants and subsidies
30,652
6.9
39,366
7.9
1,763
1,743
-1.1
Loans, guarantees
7,630
1.7
6,680
1.3
35
3,327
+9,405.7
Acquisition of holdings; capital contributions
473
0.1
7,704
1.5
2
0
-100.0
Fixed asset investment
11,592
2.6
8,101
1.6
697
312
-55.2
Construction projects
8,192
1.9
4,554
0.9
556
151
-72.8
Acquisition of movable assets
2,816
0.6
3,410
0.7
107
153
+43.0
Acquisition of real property
585
0.1
137
0.0
34
8
-76.5
General reduction/increase in expenditure
0
0.0
26,305
5.3
0
0
X
Total expenditure¹
441,798
100.0
498,620
100.0
40,480
54,218
+33.9
1 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)
140,012
45.0
140,708
44.2
9,178
8,123
-11.5
of which:
Wages tax
89,075
28.6
90,673
28.5
6,238
5,490
-12.0
Assessed income tax
25,067
8.1
25,066
7.9
695
686
-1.3
Non-assessed tax on earnings
10,761
3.5
9,200
2.9
1,280
753
-41.2
Final withholding tax on interest and capital gains
2,976
1.0
2,794
0.9
429
435
+1.4
Corporation tax
12,134
3.9
12,975
4.1
536
759
+41.6
Value added taxes (VAT)
94,391
30.3
116,743
36.6
9,134
7,182
-21.4
Trade tax apportionment paid to Federation and Länder
1,574
0.5
1,789
0.6
19
58
+205.3
Energy duty
37,635
12.1
39,850
12.5
368
332
-9.8
Tobacco duty
14,651
4.7
14,190
4.5
459
598
+30.3
Solidarity surcharge
18,676
6.0
9,950
3.1
1,420
1,274
-10.3
Insurance tax
14,553
4.7
14,890
4.7
845
843
-0.2
Electricity duty
6,561
2.1
6,880
2.2
583
585
+0.3
Motor vehicle tax
9,526
3.1
9,545
3.0
984
864
-12.2
Alcohol duty including alcopops duty
2,249
0.7
2,102
0.7
206
44
-78.6
Coffee duty
1,060
0.3
1,070
0.3
92
102
+10.9
Aviation tax
292
0.1
630
0.2
37
10
-73.0
Sparkling wine duty and intermediate products duty
428
0.1
394
0.1
45
2
-95.6
Other taxes accruing to the Federation
1
0.0
2
0.0
0
0
-
Deductions
Consolidation assistance for the Länder
1,067
X
800
X
0
0
-
Supplementary grants to Länder
8,751
X
9,179
X
0
0
-
EU own resources (GNI-based)
25,616
X
33,280
X
4,029
3,402
-15.6
EU own resources (VAT-based)
2,473
X
4,430
X
433
480
+10.9
Grants to Länderfor public transport
11,457
X
9,268
X
734
772
+5.2
Grants to Länderfor motor vehicle tax and HGV toll
8,992
X
8,992
X
0
0
-
Other revenue
27,831
8.9
25,770
8.1
2,313
1,785
-22.8
Revenue from economic activity
7,263
2.3
7,852
2.5
51
25
-51.0
Interest revenue
364
0.1
365
0.1
15
28
+86.7
Loan repayments, holdings, privatisation proceeds
1,342
0.4
1,253
0.4
34
96
+182.4
Total revenue¹
311,085
100.0
318,564
100.0
20,487
17,147
-16.3
1 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.
2021 trends in tax revenue (excluding local authority taxes)
2021 trends in tax revenue (excluding local authority taxes)¹
Joint taxes
Wages tax²
18,029
-6.4
18,029
-6.4
220,800
+5.5
Assessed income tax
1,616
-1.4
1,616
-1.4
59,300
+0.5
Non-assessed taxes on earnings
1,626
-37.1
1,626
-37.1
18,400
-14.4
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
988
+1.3
988
+1.3
6,350
-6.1
Corporation tax
1,519
+41.8
1,519
+41.8
25,950
+6.9
Value added taxes (VAT)
15,895
-18.0
15,895
-18.0
248,100
+13.0
Trade tax apportionment paid to Federation and Länder
53
+185.7
53
+185.7
4,318
+13.7
Increased trade tax apportionment
-1
X
-1
X
0
X
Total joint taxes
39,725
-11.7
39,725
-11.7
583,218
+7.2
Taxes accruing to the Federation
Energy duty
332
-9.8
332
-9.8
39,850
+5.9
Tobacco duty
598
+30.1
598
+30.1
14,190
-3.1
Alcohol duty
44
-77.6
44
-77.6
2,100
-6.2
Insurance tax
843
-0.3
843
-0.3
14,890
+2.3
Electricity duty
585
+0.4
585
+0.4
6,880
+4.9
Motor vehicle tax
864
-12.2
864
-12.2
9,545
+0.2
Aviation tax
10
-72.6
10
-72.6
630
+115.7
Solidarity surcharge
1,274
-10.3
1,274
-10.3
9,950
-46.7
Other taxes accruing to the Federation
104
-28.7
104
-28.7
1,468
-2.1
Total taxes accruing to the Federation
4,653
-7.7
4,653
-7.7
99,503
-5.8
Taxes accruing to the Länder
Inheritance tax
624
+0.2
624
+0.2
7,900
-8.1
Real property transfer tax
1,431
-6.2
1,431
-6.2
16,100
+0.3
Betting and lottery tax
201
-1.1
201
-1.1
2,115
+3.5
Beer duty
39
-17.5
39
-17.5
606
+7.0
Other taxes accruing to the Länder
25
+8.8
25
+8.8
522
+2.4
Total taxes accruing to the Länder
2,320
-4.2
2,320
-4.2
27,243
-1.9
EU own resources
Customs duties
225
-27.9
225
-27.9
4,950
+5.3
EU own resources (VAT-based)
480
+10.8
480
+10.8
4,430
+79.1
EU own resources (GNI-based)
3,402
-15.6
3,402
-15.6
33,280
+29.9
Total EU own resources
4,107
-14.0
4,107
-14.0
42,660
+30.1
Federation3
16,257
-12.8
16,257
-12.8
296,912
+4.9
Länder3
22,870
-10.0
22,870
-10.0
323,938
+2.4
EU
4,107
-14.0
4,107
-14.0
42,660
+30.1
Local authorities’ share of income tax and value added tax
3,689
-6.7
3,689
-6.7
51,404
+2.6
Total tax revenue (excluding local authority taxes)
46,923
-11.1
46,923
-11.1
714,914
+4.8
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) in January 2021 was down by 11.1% 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 (deferrals, waived enforcement measures, reductions in prepayments) taken on the basis of secondary legislation also affected tax revenue. Receipts from joint taxes were down by 11.7% on the year. The temporary cuts in VAT rates in the second half of 2020 continue to reduce VAT receipts. In addition, the deferral of deadlines for paying import VAT, which were pushed back by more than a month, led to a significant drop in revenue. There was also a major decline in receipts from non-assessed taxes on earnings. Revenue from taxes accruing solely to the Federation was down by 7.7% in January, while receipts from taxes accruing only to the Länder were down by 4.2%.
Transfers of own resources to the EU, including customs duties, were down by 14.0% on the year in January 2021. 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.
Distribution among the Federation, Länder and local authorities
The Federation’s tax receipts (after accounting for supplementary federal grants to the Länder) were down by 12.8% on the year in January 2021. The Federation’s take from joint taxes fell by 12.6% on the year due to a sharp decline in overall revenue from these taxes. In addition, revenue from taxes that accrue exclusively to the Federation were down by 7.7% on the year. In contrast, a considerable decline in payments of own resources to the EU (down by 14.0% on the year) had a positive impact on the Federation’s overall revenue figures. Supplementary grants that the Federation pays to the Länder were down on the year as well.
Länder tax receipts were down sharply by 10.0% on the year in January 2021. The revenue from joint taxes that flows to the Länder fell by 11.8% overall, due – as was the case with the Federation – to steep declines in revenue from certain joint taxes. The discontinuation of the increased trade tax apportionment also had a negative impact on Länder tax revenue totals. Furthermore, the yield from taxes that accrue exclusively to the Länder posted a substantial decline of 4.2%. Local authorities’ take from their share of joint taxes was down by 6.7% on the year.
Gross wages tax revenue in January 2021 was down by 4.0% on the year. Cash receipts in January included wages tax that was deducted for December 2020. The current lockdown measures, which took effect in November 2020 and were intensified on 16 December 2020, led to an increase in company notifications regarding short-time work. This in turn had a negative impact on wages tax revenue. Child benefit payments – which are financed from wages tax receipts – rose by 9.7% on the year due to the €15 per child increase in child benefit enacted under the Second Family Tax Burden Reduction Act (Zweites Familienentlastungsgesetz). These factors led to a sharp 6.4% year-on-year decline in cash receipts from wages tax in the month of January.
Gross receipts from corporation tax totalled roughly €1.5bn in January 2021, a year-on-year gain of 42.3%. The increase resulted mainly from routine tax assessments for 2019 and 2020. Investment allowance payments had only a minimal impact on the overall outcome due to their low volume. As a result, cash receipts from corporation tax likewise rose sharply by 41.8% on the year.
Gross revenue from assessed income tax was down by 7.7% on the year in January 2021. Employee refunds declined by 20.7% on the year in January; 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 cash receipts from assessed income tax showed a slight drop of 1.4% on the year in January 2021.
The gross yield from non-assessed taxes on earnings was down by 33.8% on the year in January 2021. Refunds by the Federal Central Tax Office, which are financed from this revenue, totalled about €133m (up by 78.3% on the year). Overall, cash receipts from non-assessed taxes on earnings fell by 37.1% in January 2021.
Final withholding tax on interest and capital gains
Revenue from final withholding tax on interest and capital gains remained basically unchanged on the year in January 2021, recording a slight gain of 1.3%.
Receipts from value added taxes were down by 18.0% on the year in January. Long-term extensions for declaring and remitting VAT have been granted to most businesses. As a result, cash receipts from domestic VAT in January 2021 included most of the VAT collected by businesses in November 2020. Despite the temporary reduction of VAT rates in the second half of 2020, cash receipts from domestic VAT were up slightly by 1.7% on the year in January. Revenue from import VAT was down by 88.0% on the year in January. This steep decline was due mainly to the deferred deadline for paying import VAT on goods imported in December 2020. Under the Second Coronavirus Tax Assistance Act (Zweites Corona-Steuerhilfegesetz), the deadline was pushed back from 16 January 2021 to 26 February 2021.
In January 2021, revenue from taxes accruing solely to the Federation was down by 7.7% compared with the same month last year. For some taxes, the tax measures that were introduced to improve the liquidity of companies resulted in a decline in revenue. In the case of alcohol duty, sparkling wine duty and intermediate products duty, amounts due in January 2021 were paid already in December 2020. This led to significant year-on-year declines in revenue from these duties in January: 77.6% for alcohol duty, 95.9% for sparkling wine duty, and 82.0% for intermediate products duty. Other taxes posting lower revenue on the year in January included energy duty (down by 9.8%), motor vehicle tax (down by 12.2%) and aviation tax (down by 72.6%). Revenue from the solidarity surcharge also fell, by 10.3%. This was due only in small part to the abolition of the solidarity surcharge for approximately 90% of wages tax and income tax payers. Rather, the main reason for the drop in solidarity surcharge revenue was the decline in receipts from the taxes that make up its base (in particular, lower revenue from wages tax and non-assessed taxes on earnings). In January, revenue gains were recorded for tobacco duty (up by 30.1%) and coffee duty (up by 10.0%). Trends in revenue from other taxes had only a minor impact on overall receipts from federal taxes.
Receipts from taxes accruing solely to the Länder were down by 4.2% on the year in January 2021. This outcome was driven mainly by lower revenue from real property transfer tax (down by 6.2%) and beer duty (down by 17.5%). Betting and lottery tax revenue also fell slightly by 1.1%. In contrast, fire protection tax and inheritance tax posted year-on-year gains of 8.8% and 0.2% respectively in January.
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in January 2021
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in January 2021
in €m
Total
1,203,952
44,996
-32,555
1,216,393
12,441
-3,654
broken down by purpose
Federal budget
1,163,306
44,495
-32,555
1,175,246
11,940
-3,654
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))
22,774
-3
-
22,771
-3
-
Investment and Redemption Fund
16,043
-
-
16,043
-
-
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
1,828
504
-
2,333
504
-
broken down by debt type
Conventional federal securities
1,125,122
44,425
-32,555
1,136,993
11,871
-3,825
30-year federal bonds
252,394
1,285
-
253,679
1,285
-3,704
10-year federal bonds
532,017
11,179
-19,000
524,196
-7,821
-334
Federal notes
155,660
3,784
-
159,444
3,784
119
Federal Treasury notes
77,543
6,696
-
84,239
6,696
81
Treasury discount papers issued by the Federation
107,509
21,482
-13,555
115,436
7,927
14
Inflation-linked federal securities
58,279
550
-
58,829
550
171
30-year inflation-linked federal bonds
9,347
165
-
9,512
165
85
10-year inflation-linked federal bonds
48,932
385
-
49,317
385
86
Green federal securities
9,876
20
-
9,896
20
1
10-year green federal bonds
6,390
-
-
6,390
-
-
Green federal notes
3,486
20
-
3,506
20
1
Other federal securities
-
-
-
-
-
-
Securitised loans
6,202
-
-
6,202
-
-1
Other loans and ordinary debts
4,474
-
-
4,474
-
-
Additional information
Liabilities from the indexing of inflation-linked federal securities1
3,692
3,508
-184
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)2
3,554
3,585
31
-
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).
Borrowing trends for the Federation (loan financing) in January 2021
Borrowing trends for the Federation (loan financing) in January 2021
in €m
Debt level
Borrowing
(increase)
Debt repayment
(decrease)
Debt level
Change in debt level
(balance)
Interest
31 December 2020
January
January
31 January 2021
January
January
Total
68,032
2,500
-
70,532
2,500
121
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
2,500
-
32,500
2,500
121
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)²
38,032
-
-
38,032
-
-
Any discrepancies in totals are due to rounding.
¹ Under section 9 (5) of the Stabilisation Fund Act, the Federal Ministry of Finance is empowered to borrow up to €60bn 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.
²Under 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.