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¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Zweiten Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2020) of 3 June 2021 (Federal Law Gazette I No 29, p. 1410).
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 first half of 2021 totalled approximately €147.0bn, down by 1.5% (about €2.3bn) on the year. Tax receipts (taking into account transfers of own resources to the EU) were up by 0.8% (roughly €1.1bn) on the year. Revenue from income tax and corporation tax increased by 8.6% (roughly €5.7bn), while the yield from value added taxes rose by 7.3% (roughly €3.6bn) on the year. Revenue from the solidarity surcharge was down by 37.6% (approximately €3.4bn), largely due to the abolition this year of the solidarity surcharge for approximately 90% of wages tax and income tax payers. Payments to the EU (GNI-based own resources and VAT-based own resources) increased by about €4.7bn in year-on-year terms.
Other revenue was down by 25.4% (approximately €3.4bn) on the year in the first half of 2021. This was mainly due to the fact that the Federation’s share of the Bundesbank’s net profits was not remitted. In the previous year, the Bundesbank transferred approximately €5.9bn to the Federation, of which €2.5bn remained in the federal budget. The other €3.4bn had to be allocated to the special investment and redemption fund to repay the fund’s debts.
Measures to counteract the coronavirus pandemic and its effects are having a significant impact on budget execution in 2021. Federal expenditure in the first half of 2021 totalled approximately €245.6bn, up by 22.7% (roughly €45.5bn) on the year. A breakdown by economic category shows that higher spending in the January–June period was driven mainly by consumption spending, which was up by 16.5% (approximately €30.9bn). Ongoing grants and subsidies to public administrations, businesses and social security funds accounted for most of this increase. Grants to public administrations rose by 22.9% (roughly €4.6bn) on the year; the allocation of approximately €2.5bn to the energy and climate fund was a major factor in this increase. Last year, the allocation to the energy and climate fund from the federal budget was not made until November. Subsidies to businesses grew by 24.5% (roughly €7.4bn) on the year; most of this increased spending consisted of assistance to businesses affected by the fallout from the pandemic. About €23.0bn of the funds earmarked for this purpose were disbursed by 30 June 2021. Grants to social security funds were up by 21.8% (around €15.5bn) on the year. This includes roughly €10.0bn in disbursements to the health fund to cover costs caused by the pandemic. These grants also include €3.0bn in disbursements to the health fund’s liquidity reserves for a programme to future-proof hospitals.
Investment spending totalled approximately €27.5bn, an increase of 113.1% (roughly €14.6bn) over June 2020. The main factor driving this increase was liquidity assistance provided to the Federal Employment Agency (roughly €13.9bn so far this year), which was booked in the form of loans. In contrast, fixed asset investment was down by 46.5% (about €2.0bn) due to a decline in spending on construction projects. The year-on-year decline in construction spending is due mainly to a special factor that will affect the entire year: as of 2021, investments in trunk road construction are being outsourced to Autobahn GmbH des Bundes (Federal Autobahn GmbH). These funds are being provided to Autobahn GmbH des Bundes in the form of investment grants, which were up by approximately €1.3bn on the year in June 2021. Approximately €5.5bn has been earmarked for these investment grants in 2021. As a result, about €4.7bn less has been budgeted for construction investment in 2021 than in 2020 (and about €4.2bn less than the amount that was actually spent on construction investment in 2020).
The federal budget recorded a deficit of €98.6bn in the first half of 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.
Trends in federal expenditure by function
Trends in federal expenditure by function
Actual 2020
2021 target¹
Actual
Year-on-year change
(year to date)
June 2020
June 2021
in €m
share in %
in €m
share in %
in €m
in %
General public services
95,479
21.6
103,911
19.0
41,537
42,869
+3.2
Economic cooperation and development
12,127
2.7
12,324
2.3
3,874
3,611
-6.8
Defence
45,471
10.3
47,019
8.6
19,880
20,707
+4.2
Government, central administration
19,199
4.3
22,707
4.1
9,699
10,235
+5.5
Revenue administration
5,342
1.2
5,922
1.1
2,581
2,796
+8.3
Education, science, research, cultural affairs
28,645
6.5
31,829
5.8
10,159
11,130
+9.6
Support for school and university students and training programme participants
6,045
1.4
5,182
0.9
1,855
2,655
+43.1
Science, research and development outside of higher education institutions
15,236
3.4
18,207
3.3
5,699
5,244
-8.0
Social security, family affairs and youth, labour market policy
218,365
49.4
284,649
52.0
113,503
154,181
+35.8
Social security funds including unemployment insurance
129,829
29.4
134,149
24.5
68,456
87,772
+28.2
of which:
General pension insurance
93,004
21.1
97,401
17.8
52,807
55,306
+4.7
Health insurance
15,884
3.6
19,010
3.5
7,909
10,777
+36.3
Unemployment insurance
6,913
1.6
3,350
0.6
0
13,931
-
Labour market policy
40,876
9.3
45,360
8.3
18,376
21,431
+16.6
of which:
Basic income support for jobseekers under Book II of the Social Code
20,658
4.7
23,700
4.3
10,550
11,556
+9.5
Government housing and heating allowances under Book II of the Social Code
10,097
2.3
11,200
2.0
3,239
5,236
+61.7
Family assistance, welfare services, etc.
10,343
2.3
11,395
2.1
5,040
5,504
+9.2
Social benefits for the consequences of war and political events
2,039
0.5
2,269
0.4
1,095
1,146
+4.6
Other social affairs
24,149
5.5
79,621
14.5
15,513
33,078
+113.2
Health, environment, sport, recreation
19,001
4.3
25,114
4.6
10,219
9,201
-10.0
Housing, urban development, regional planning and local community services
1,783
0.4
2,972
0.5
597
747
+25.2
Housing, home ownership savings premium
893
0.2
1,675
0.3
425
586
+37.9
Food, agriculture and forestry
1,469
0.3
2,611
0.5
319
601
+88.4
Energy and water management, trade and services
5,509
1.2
14,620
2.7
3,275
2,606
-20.4
Regional support measures
1,400
0.3
2,968
0.5
420
393
-6.5
Mining, manufacturing and construction
2,316
0.5
1,491
0.3
2,112
481
-77.2
Transport and communication
22,961
5.2
33,683
6.1
8,794
8,824
+0.3
Roads
9,791
2.2
9,815
1.8
3,626
2,560
-29.4
Railways and public transport
8,156
1.8
16,321
3.0
2,925
2,945
+0.7
Financial management
48,585
11.0
48,336
8.8
11,916
15,643
+31.3
Interest expenditure and borrowing-related expenditure
6,457
1.5
10,267
1.9
8,535
9,226
+8.1
Total expenditure²
441,798
100.0
547,726
100.0
200,137
245,589
+22.7
¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Zweiten Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2020) of 3 June 2021 (Federal Law Gazette I No 29, p. 1410).
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.
Source: Federal Ministry of Finance
Trends in federal expenditure by economic category
Trends in federal expenditure by economic category
Consumption expenditure
391,450
88.6
461,191
84.2
187,242
218,106
+16.5
Human resources expenditure
35,409
8.0
35,960
6.6
18,232
18,831
+3.3
Salary payments
26,249
5.9
26,817
4.9
13,299
13,891
+4.5
Pensions
9,160
2.1
9,144
1.7
4,933
4,941
+0.2
Operating expenditure
36,370
8.2
44,823
8.2
14,035
14,968
+6.6
Maintenance of immovable property
1,801
0.4
1,164
0.2
777
480
-38.2
Military procurement
16,833
3.8
18,155
3.3
5,401
5,823
+7.8
Other
17,736
4.0
25,504
4.7
7,857
8,666
+10.3
Interest expenditure
6,413
1.5
10,261
1.9
8,518
9,210
+8.1
Ongoing grants and subsidies
312,053
70.6
366,125
66.8
145,803
174,280
+19.5
to public administrations
75,607
17.1
40,670
7.4
19,851
24,401
+22.9
to other areas
236,446
53.5
325,455
59.4
125,952
149,879
+19.0
of which:
Companies
49,569
11.2
104,429
19.1
30,130
37,501
+24.5
Pensions, benefits, etc.
30,735
7.0
36,535
6.7
15,599
17,067
+9.4
Social security funds
134,613
30.5
153,495
28.0
71,220
86,723
+21.8
Other asset transfers
1,205
0.3
4,022
0.7
655
817
+24.7
Investment expenditure
50,348
11.4
59,268
10.8
12,895
27,483
+113.1
Financial assistance
38,756
8.8
51,165
9.3
8,600
25,184
+192.8
Grants and subsidies
30,652
6.9
39,856
7.3
8,284
9,468
+14.3
Loans, guarantees
7,630
1.7
6,680
1.2
308
15,393
+4,897.7
Acquisition of holdings; capital contributions
473
0.1
4,628
0.8
9
323
+3,488.9
Fixed asset investment
11,592
2.6
8,103
1.5
4,295
2,299
-46.5
Construction projects
8,192
1.9
4,554
0.8
3,099
1,350
-56.4
Acquisition of movable assets
2,816
0.6
3,412
0.6
997
923
-7.4
Acquisition of real property
585
0.1
137
0.0
199
26
-86.9
General reduction/increase in expenditure
0
0.0
27,267
5.0
0
0
X
Total expenditure²
441,798
100.0
547,726
100.0
200,137
245,589
+22.7
¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Zweiten Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2020) of 3 June 2021 (Federal Law Gazette I No 29, p. 1410).
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.
Source: Federal Ministry of Finance
Income tax and corporation tax
(incl. final withholding tax on interest and capital gains)
140,012
45.0
134,358
43.7
66,627
72,353
+8.6
of which:
Wages tax
89,075
28.6
84,651
27.5
42,278
40,851
-3.4
Assessed income tax
25,067
8.1
24,814
8.1
12,472
13,675
+9.6
Non-assessed tax on earnings
10,761
3.5
9,200
3.0
4,848
5,969
+23.1
Final withholding tax on interest and capital gains
2,976
1.0
2,794
0.9
1,609
2,327
+44.6
Corporation tax
12,134
3.9
12,899
4.2
5,421
9,532
+75.8
Value added taxes (VAT)
94,391
30.3
114,323
37.2
48,684
52,260
+7.3
Trade tax apportionment paid to Federation and Länder
1,574
0.5
1,789
0.6
545
639
+17.2
Energy duty
37,635
12.1
39,850
13.0
13,083
12,843
-1.8
Tobacco duty
14,651
4.7
14,190
4.6
6,186
6,638
+7.3
Solidarity surcharge
18,676
6.0
9,950
3.2
9,165
5,717
-37.6
Insurance tax
14,553
4.7
14,890
4.8
9,372
9,620
+2.6
Electricity duty
6,561
2.1
6,880
2.2
3,294
3,332
+1.2
Motor vehicle tax
9,526
3.1
9,545
3.1
5,059
5,036
-0.5
Alcohol duty including alcopops duty
2,249
0.7
2,102
0.7
1,027
924
-10.0
Coffee duty
1,060
0.3
1,070
0.3
489
528
+8.0
Aviation tax
292
0.1
630
0.2
162
124
-23.5
Sparkling wine duty and intermediate products duty
428
0.1
394
0.1
202
158
-21.8
Other taxes accruing to the Federation
1
0.0
2
0.0
1
1
-
Deductions
Consolidation assistance for the Länder
1,067
X
800
X
0
0
-
Supplementary grants to Länder
8,751
X
9,179
X
4,878
5,195
+6.5
EU own resources (GNI-based)
25,616
X
33,280
X
12,763
16,567
+29.8
EU own resources (VAT-based)
2,473
X
4,430
X
1,541
2,402
+55.9
Grants to Länder for public transport
11,457
X
9,268
X
4,478
4,634
+3.5
Grants to Länderfor motor vehicle tax and HGV toll
8,992
X
8,992
X
4,496
4,496
-
Other revenue
27,831
8.9
23,290
7.6
13,541
10,107
-25.4
Revenue from economic activity
7,263
2.3
5,352
1.7
3,985
1,541
-61.3
Interest revenue
364
0.1
385
0.1
104
141
+35.6
Loan repayments, holdings, privatisation proceeds
1,342
0.4
1,253
0.4
313
248
-20.8
Total revenue²
311,085
100.0
307,314
100.0
149,282
146,988
-1.5
¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Zweiten Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2020) of 3 June 2021 (Federal Law Gazette I No 29, p. 1410).
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.
Source: Federal Ministry of Finance
2021 trends in tax revenue (excluding local authority taxes)
2021 trends in tax revenue (excluding local authority taxes)¹
Joint taxes
Wages tax²
18,426
+1.9
101,637
-2.4
211,300
+1.0
Assessed income tax
14,247
+15.4
32,173
+9.6
61,150
+3.7
Non-assessed taxes on earnings
4,874
+102.6
12,725
+27.9
21,400
-0.5
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
517
+83.5
5,288
+44.6
7,500
+10.9
Corporation tax
7,632
+51.0
19,063
+75.8
28,150
+16.0
Value added taxes
16,578
+1.5
112,429
+7.8
245,400
+11.8
Trade tax apportionment paid to Federation and Länder
3
X
1,467
+11.6
4,419
+16.3
Increased trade tax apportionment
0
X
-0
X
0
X
Total joint taxes
62,275
+14.3
284,783
+8.0
579,319
+6.4
Taxes accruing to the Federation
Energy duty
3,180
+19.4
12,843
-1.8
39,150
+4.0
Tobacco duty
1,336
+20.8
6,638
+7.3
14,460
-1.3
Alcohol duty
145
-7.2
923
-9.2
1,935
-13.5
Insurance tax
760
+6.6
9,620
+2.6
14,890
+2.3
Electricity duty
521
-14.6
3,332
+1.2
6,740
+2.7
Motor vehicle tax
881
+12.7
5,036
-0.5
9,545
+0.2
Aviation tax
16
+989.8
124
-23.4
450
+54.1
Solidarity surcharge
1,559
-29.2
5,717
-37.6
10,050
-46.2
Other taxes accruing to the Federation
116
+21.1
688
-2.1
1,401
-6.6
Total taxes accruing to the Federation
8,515
+2.2
44,922
-6.5
98,621
-6.6
Taxes accruing to the Länder
Inheritance tax
847
+14.2
4,483
+8.4
8,500
-1.2
Real property transfer tax
1,445
+20.6
8,947
+10.6
16,700
+4.0
Betting and lottery tax
196
+32.3
1,116
+15.4
2,170
+6.2
Beer duty
52
+73.9
267
+24.9
585
+3.3
Other taxes accruing to the Länder
34
-0.8
341
+4.8
522
+2.4
Total taxes accruing to the Länder
2,575
+19.6
15,155
+10.4
28,477
+2.5
EU own resources
Customs duties
393
+10.1
2,264
+0.0
4,950
+5.3
EU own resources (VAT-based)
259
+70.5
2,402
+55.8
4,430
+79.1
EU own resources (GNI-based)
1,389
+1,853.9
16,567
+29.8
33,290
+30.0
Total EU own resources
2,041
+252.0
21,233
+28.2
42,670
+30.1
Federation³
32,330
+7.3
139,618
+1.3
293,760
+3.8
Länder³
33,789
+15.0
161,486
+8.5
324,596
+2.6
EU
2,041
+252.0
21,233
+28.2
42,670
+30.1
Local authorities’ share of income tax and value added tax
5,600
+6.9
24,788
+1.5
50,341
+0.5
Total tax revenue (excluding local authority taxes)
73,759
+12.9
347,124
+5.9
711,367
+4.3
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 May 2021. Source: Federal Ministry of Finance
Total tax revenue (excluding local authority taxes) was up by 12.9% on the year in June 2021. However, it is important to note the low baseline figure, as tax revenue in June 2020 was down significantly due to the tax measures that were taken to mitigate the effects of the pandemic. Compared with June 2019 (i.e. the same month in the year prior to the crisis), tax revenue in June 2021 was down by 8.6%. Total receipts from joint taxes were up by 14.3% on the year in June 2021. Revenue from taxes accruing solely to the Federation was up by 2.2% on the year in June, while receipts from taxes accruing to the Länder rose by 19.6%.
Transfers of own resources to the EU, including customs duties, were up by just under €1.5bn on the year in June 2021. In general, monthly requisitions are based on the annual EU budget that is in force for the respective year. In June of each year, balances are routinely adjusted to take account of corrections for previous years. This can lead to positive or negative fluctuations in member state contributions, but such fluctuations flatten out in annualised terms. In the past two years, these balance adjustments have gone in Germany’s favour: by €1.5bn in June 2020 and by €443m in June 2021.
In the first half of 2021, total tax receipts (excluding local authority taxes) were up by 5.9% on the year. Revenue from joint taxes rose by 8.0%, while receipts from taxes accruing solely to the Federation declined by 6.5%. Revenue from taxes accruing solely to the Länder was up by 10.4%.
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 7.3% on the year in June 2021. Revenue from purely federal taxes posted a gain of 2.2%, and the Federation’s take from joint taxes rose by 14.8%. In contrast, transfers of own resources to the EU and supplementary federal grants to the Länder were both up sharply.
Länder tax receipts also increased markedly on the year in June 2021, by 15.0%. The revenue from joint taxes that is allocated to the Länder rose by 15.3%. In addition, the yield from taxes that accrue exclusively to the Länder posted a robust gain of 19.6%. Local authorities’ take from their share of joint taxes was 6.9% higher than in the same period last year.
Gross revenue from wages tax was up by 5.7% on the year in June, despite the reductions in revenue caused by tax relief measures in the current year (i.e. the increase in the basic personal allowance and the related shift in the other tax thresholds). Cash receipts in June included wages tax that was remitted for May 2021. The number of employees in short-time work was much lower in May 2021 than in the previous May, and this likely made a major contribution to the growth in revenue. Receipts were also boosted by a slight uptick in employment, which grew in May 2021 for the first time since the onset of the pandemic. Nevertheless, cash receipts from wages tax posted only a small year-on-year gain of 1.9% in June 2021, mainly because child benefit payments – which are financed from wages tax receipts – climbed by 24.2% on the year. This large increase is likely related to child bonus payments of €150. Most of these payments were disbursed in May, but some were not reflected in government accounts until June. In addition, since 1 January 2021, the €15 per child increase in child benefit enacted under the Second Family Tax Burden Reduction Act (Zweites Familienentlastungsgesetz) has also served to reduce wages tax revenue totals. In the first half of 2021, cash receipts from wages tax were down by 2.4% on the year.
Gross corporation tax revenue was up by 51.0% on the year in June (a key revenue month because prepayments are due), mainly due to the low baseline figure from the previous June, when gross corporation tax receipts fell by 38.1% compared with the same month in 2019. At that time, regular prepayments of corporation tax declined by about 25% due to (a) the pandemic-related recession and (b) the tax options contained in the package of measures to mitigate the effects of the crisis. Revenue was further reduced by deferrals of tax payments. In June 2021, prepayments were up sharply by 24% but still remained below the level of June 2019. Gross corporation tax revenue in June 2021 was still down by 6.5% compared with the same month two years ago. The tax allowance for research was granted for the first time in June 2021, in an amount of approximately €0.5m. Because of their low volume, investment allowance payments had hardly any influence on receipts in June 2021. In cumulative terms, cash receipts from corporation tax were up by 75.8% on the year in the first half of 2021.
Gross receipts from assessed income tax were up by 15.4% on the year in June (a month when prepayments are due). As was the case with corporation tax, pandemic-related tax measures significantly lowered the 2020 baseline. Prepayments for the current year were up by approximately 12% over June 2020 and slightly higher than in June 2019. Gross revenue from assessed income tax totalled €15.6bn in June 2021. This was just slightly below pre-pandemic levels (€15.7bn in June 2019). Employee refunds, which are subtracted from the gross figure, were 15.8% higher on the year. Investment allowance payments and owner-occupied homes premiums, which are increasingly insignificant in terms of amount, are also subtracted from the gross figure. The tax allowance for research was granted for the first time, in an amount of roughly €13,000. In cumulative terms, cash receipts from assessed income tax were up by 9.6% on the year in the first half of 2021.
Gross receipts from non-assessed taxes on earnings were up by 97.7% on the year in June 2021. In 2020, pandemic-related restrictions led to the postponement of many shareholders’ meetings, which in turn shifted the timing of dividend payments. As a result, revenue from non-assessed taxes on earnings was very low in June 2020 (down by 61.8% compared with June 2019). This helps explain the sharp gain recorded in June 2021. Refunds by the Federal Central Tax Office, which are financed from this revenue, were up only slightly by 2.9% on the year. Overall, cash receipts from non-assessed taxes on earnings were up by 102.6% on the year in June 2021. Cumulatively, cash receipts from non-assessed taxes on earnings grew by 27.9% on the year in the first half of 2021.
Final withholding tax on interest and capital gains
Revenue from final withholding tax on interest and capital gains was up by 83.5% on the year in June 2021. In cumulative terms, cash receipts from this tax rose by 44.6% on the year in the first half of 2021.
Revenue from value added taxes was up by 1.5% on the year in June 2021, with receipts from domestic VAT recording a gain of 9.8%. VAT receipts were down sharply in June 2020 due to (a) lockdown-related revenue losses and (b) deferrals granted as part of the package of tax measures taken to cushion the effects of the crisis. Starting in 2021, the due date for paying import VAT was moved to the 26th day of the month. Depending on how many working days remain in a given month, some revenue may not be posted to government accounts until the following month. This new arrangement led to a 24.7% decline in import VAT revenue in June 2021. Cumulatively, cash receipts from value-added taxes were up by 7.8% on the year in the first half of 2021.
In June 2021, revenue from taxes accruing solely to the Federation was up by 2.2% on the year. Revenue increased significantly in the case of energy duty (up by 19.4%), motor vehicle tax (up by 12.7%), tobacco duty (up by 20.8%) and insurance tax (up by 6.6%). It is fair to assume that energy duty receipts were affected by the very sharp pandemic-related reduction in mobility in spring 2020 and the corresponding decline in fuel consumption. Although mobility remained noticeably restricted this spring, it was nonetheless higher than last year’s levels. In contrast, receipts from electricity duty and alcohol duty were down on the year, by 14.6% and 7.2%, respectively. Receipts from the solidarity surcharge fell by 29.2%, mainly as a result of its near-complete abolition. Trends in revenue from other taxes had only a minor impact on overall receipts from federal taxes. In cumulative terms, cash receipts from taxes accruing solely to the Federation were down by 6.5% in the first half of 2021.
Receipts from taxes accruing solely to the Länder were up markedly by 19.6% on the year in June 2021. Significant revenue gains were recorded for real property transfer tax (up by 20.6%), inheritance tax (up by 14.2%) and betting and lottery tax (up by 32.3%). Beer duty was also up sharply by 73.9%, while fire protection tax revenue fell slightly by 0.9%. In cumulative terms, revenue from taxes accruing solely to the Länder was up by 10.4% on the year in the first half of 2021.
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in June 2021
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in June 2021
in €m
Total
1,285,389
44,884
-30,486
1,299,787
14,398
859
broken down by purpose
Federal budget
1,242,882
41,069
-28,079
1,255,871
12,990
871
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))
22,778
1,052
-1,052
22,778
-
-1
Investment and Redemption Fund
16,058
816
-816
16,058
-
-5
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
3,671
1,948
-540
5,080
1,408
-5
broken down by debt type
Conventional federal securities
1,196,561
44,125
-30,486
1,210,199
13,638
709
30-year federal bonds
260,008
2,452
-
262,460
2,452
131
10-year federal bonds
560,639
14,056
-
574,695
14,056
368
Federal notes
150,036
5,076
-
155,113
5,076
102
Federal Treasury notes
89,732
3,850
-12,285
81,297
-8,435
47
Treasury discount papers issued by the Federation
136,146
18,690
-18,201
136,635
489
61
Inflation-linked federal securities
61,809
760
-
62,569
760
183
30-year inflation-linked federal bonds
9,886
25
-
9,911
25
13
10-year inflation-linked federal bonds
51,923
735
-
52,658
735
170
Green federal securities
16,526
-
-
16,526
-
0
30-year green federal bonds
5,500
-
-
5,500
-
0
10-year green federal bonds
6,390
-
-
6,390
-
0
Green federal notes
4,636
-
-
4,636
-
0
Securitised loans
6,020
-
-
6,020
-
-12
Loans through repurchase transactions
-
-
-
-
-
-
Other loans and ordinary debts
4,474
-
-
4,474
-
-21
Additional information
Liabilities from the indexing of inflation-linked federal securities1
4,635
5,056
420
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)2
4,204
4,227
24
-
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).
Any discrepancies in totals are due to rounding.
Source: Federal Ministry of Finance
Borrowing trends for the Federation (loan financing) in June 2021
Borrowing trends for the Federation (loan financing) in June 2021
in €m
Total
79,424
3,800
-3,108
80,116
692
94
broken down by purpose
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)¹
42,800
3,800
-1,700
44,900
2,100
86
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)²
36,624
-
-1,408
35,216
-1,408
8
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.
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.
Source: Federal Ministry of Finance