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.
Any discrepancies in totals are due to rounding. 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 for the period from January to July 2021 totalled approximately €176.4bn, up by 0.7% (about €1.3bn) on the year. Tax receipts (taking into account transfers of own resources to the EU) increased by 3.2% (roughly €5.1bn) on the year. Revenue from income tax and corporation tax rose by 9.8% (roughly €7.5bn), while the yield from value added taxes rose by 12.4% (roughly €7.0bn) on the year. Revenue from the solidarity surcharge was down by 40.4% (approximately €4.2bn), 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 €4.8bn in year-on-year terms.
The category of “other revenue” was down by 23.5% (roughly €3.9bn) on the year in the January–July period. This was mainly due to the fact that the Federation’s share (€2.5bn) of the Bundesbank’s net profits was not remitted.
Measures to counteract the Covid-19 pandemic and its effects are having a significant impact on budget execution in 2021. Federal expenditure in the first seven months of 2021 totalled approximately €283.2bn, up by 20.6% (roughly €48.3bn) on the year. A breakdown by economic category shows that higher spending in the January–July period was driven mainly by consumption spending, which was up by 15.1% (approximately €33.0bn). Ongoing grants to social security funds and subsidies to businesses made up most of this rise. Subsidies to businesses grew by 38.9% (roughly €12.4bn) on the year; most of this increased spending consisted of assistance to businesses affected by the fallout from the pandemic. About €27.0bn of the funds earmarked for this purpose were disbursed by 31 July 2021. Grants to social security funds were up by 15.1% (around €13.2bn) on the year. This includes disbursements to the health fund to cover costs caused by the Covid-19 pandemic, which increased by approximately €9.1bn in the January–July period in year-on-year terms. These grants also include €3.0bn in disbursements to the health fund’s liquidity reserves for a programme to future-proof hospitals, which was only established this year; this is the amount that was budgeted for this purpose.
Investment spending totalled approximately €32.0bn, an increase of 91.5% (roughly €15.3bn) over July 2020. The main factor driving this increase was liquidity assistance provided to the Federal Employment Agency, which was booked in the form of loans and was up by approximately €14.6bn on the year. In contrast, fixed asset investment was down by 49.3% (about €2.7bn) 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: since the beginning of 2021, investments in trunk road construction have been outsourced to Autobahn GmbH des Bundes (Federal Autobahn GmbH). The necessary funds are being provided to Autobahn GmbH des Bundes in the form of investment grants, which were up by approximately €1.7bn on the year in July 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 €106.8bn for the period from January to July 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
Actual2020
2021target¹
Actual
Year-on-yearchange
(year to date)
July2020
July2021
in€m
sharein%
in€m
sharein%
in€m
in%
General public services
95,479
21.6
103,911
19.0
49,230
51,837
+5.3
Economic cooperation and development
12,127
2.7
12,324
2.3
4,766
5,777
+21.2
Defence
45,471
10.3
47,019
8.6
23,657
24,009
+1.5
Government, central administration
19,199
4.3
22,707
4.1
11,226
11,919
+6.2
Revenue administration
5,342
1.2
5,922
1.1
3,056
3,281
+7.4
Education, science, research, cultural affairs
28,645
6.5
31,829
5.8
12,032
12,964
+7.7
Support for school and university students and training programme participants
6,045
1.4
5,182
0.9
2,092
2,893
+38.3
Science, research and development outside of higher education institutions
15,236
3.4
18,207
3.3
6,750
6,326
-6.3
Social security, family affairs and youth, labour market policy
218,365
49.4
284,649
52.0
135,607
179,139
+32.1
Social security funds including unemployment insurance
129,829
29.4
134,149
24.5
79,582
99,889
+25.5
of which:
General pension insurance
93,004
21.1
97,401
17.8
60,676
63,539
+4.7
Health insurance
15,884
3.6
19,010
3.5
9,247
12,103
+30.9
Unemployment insurance
6,913
1.6
3,350
0.6
742
15,310
-
Labour market policy
40,876
9.3
45,360
8.3
21,653
24,877
+14.9
of which:
Basic income support for jobseekers under Book II of the Social Code
20,658
4.7
23,700
4.3
12,375
13,341
+7.8
Government housing and heating allowances under Book II of the Social Code
10,097
2.3
11,200
2.0
3,875
6,053
+56.2
Family assistance, welfare services, etc.
10,343
2.3
11,395
2.1
5,996
6,476
+8.0
Social benefits for the consequences of war and political events
2,039
0.5
2,269
0.4
1,294
1,330
+2.8
Other social affairs
24,149
5.5
79,621
14.5
20,409
39,885
+95.4
Health, environment, sport, recreation
19,001
4.3
25,114
4.6
12,412
10,267
-17.3
Housing, urban development, regional planning and local community services
1,783
0.4
2,972
0.5
699
803
+14.8
Housing, home ownership savings premium
893
0.2
1,675
0.3
492
606
+23.3
Food, agriculture and forestry
1,469
0.3
2,611
0.5
422
719
+70.4
Energy and water management, trade and services
5,509
1.2
14,620
2.7
3,546
2,924
-17.5
Regional support measures
1,400
0.3
2,968
0.5
536
533
-0.7
Mining, manufacturing and construction
2,316
0.5
1,491
0.3
2,147
517
-75.9
Transport and communication
22,961
5.2
33,683
6.1
10,700
10,968
+2.5
Roads
9,791
2.2
9,815
1.8
4,506
3,342
-25.8
Railways and public transport
8,156
1.8
16,321
3.0
3,552
3,645
+2.6
Financial management
48,585
11.0
48,336
8.8
10,204
13,567
+33.0
Interest expenditure and borrowing-related expenditure
6,457
1.5
10,267
1.9
6,490
6,835
+5.3
Total expenditure²
441,798
100.0
547,726
100.0
234,854
283,188
+20.6
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
218,138
251,180
+15.1
Human resources expenditure
35,409
8.0
35,960
6.6
21,209
21,914
+3.3
Salary payments
26,249
5.9
26,817
4.9
15,479
16,188
+4.6
Pensions
9,160
2.1
9,144
1.7
5,730
5,727
-0.1
Operating expenditure
36,370
8.2
44,823
8.2
17,086
17,932
+5.0
Maintenance of immovable property
1,801
0.4
1,164
0.2
940
532
-43.4
Military procurement
16,833
3.8
18,155
3.3
6,947
6,808
-2.0
Other
17,736
4.0
25,504
4.7
9,199
10,592
+15.1
Interest expenditure
6,413
1.5
10,261
1.9
6,458
6,818
+5.6
Ongoing grants and subsidies
312,053
70.6
366,125
66.8
172,607
203,595
+18.0
to public administrations
75,607
17.1
40,670
7.4
24,506
27,839
+13.6
to other areas
236,446
53.5
325,455
59.4
148,101
175,756
+18.7
of which:
Companies
49,569
11.2
104,429
19.1
31,795
44,154
+38.9
Pensions, benefits, etc.
30,735
7.0
36,535
6.7
18,319
19,751
+7.8
Social security funds
134,613
30.5
153,495
28.0
87,402
100,560
+15.1
Other asset transfers
1,205
0.3
4,022
0.7
778
921
+18.4
Investment expenditure
50,348
11.4
59,268
10.8
16,715
32,008
+91.5
Financial assistance
38,756
8.8
51,165
9.3
11,300
29,264
+159.0
Grants and subsidies
30,652
6.9
39,856
7.3
10,190
12,090
+18.6
Loans, guarantees
7,630
1.7
6,680
1.2
1,101
16,850
-
Acquisition of holdings; capital contributions
473
0.1
4,628
0.8
9
323
-
Fixed asset investment
11,592
2.6
8,103
1.5
5,416
2,744
-49.3
Construction projects
8,192
1.9
4,554
0.8
3,839
1,643
-57.2
Acquisition of movable assets
2,816
0.6
3,412
0.6
1,331
1,073
-19.4
Acquisition of real property
585
0.1
137
0.0
246
28
-88.6
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
234,854
283,188
+20.6
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
75,998
83,465
+9.8
of which:
Wages tax
89,075
28.6
84,651
27.5
49,955
49,154
-1.6
Assessed income tax
25,067
8.1
24,814
8.1
12,372
13,883
+12.2
Non-assessed tax on earnings
10,761
3.5
9,200
3.0
6,564
7,941
+21.0
Final withholding tax on interest and capital gains
2,976
1.0
2,794
0.9
1,816
2,628
+44.7
Corporation tax
12,134
3.9
12,899
4.2
5,290
9,859
+86.4
Value added taxes (VAT)
94,391
30.3
114,323
37.2
56,714
63,724
+12.4
Trade tax apportionment paid to Federation and Länder
1,574
0.5
1,789
0.6
736
920
+25.0
Energy duty
37,635
12.1
39,850
13.0
16,224
15,713
-3.1
Tobacco duty
14,651
4.7
14,190
4.6
7,867
7,885
+0.2
Solidarity surcharge
18,676
6.0
9,950
3.2
10,365
6,180
-40.4
Insurance tax
14,553
4.7
14,890
4.8
10,119
10,394
+2.7
Electricity duty
6,561
2.1
6,880
2.2
3,778
3,849
+1.9
Motor vehicle tax
9,526
3.1
9,545
3.1
5,909
5,917
+0.1
Alcohol duty including alcopops duty
2,249
0.7
2,102
0.7
1,181
1,076
-8.9
Coffee duty
1,060
0.3
1,070
0.3
578
611
+5.7
Aviation tax
292
0.1
630
0.2
171
165
-3.5
Sparkling wine duty and intermediate products duty
428
0.1
394
0.1
227
185
-18.5
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
1,067
800
-25.0
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
13,989
17,913
+28.1
EU own resources (VAT-based)
2,473
X
4,430
X
1,671
2,587
+54.8
Grants to Länderfor public transport
11,457
X
9,268
X
5,225
5,406
+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
16,570
12,682
-23.5
Revenue from economic activity
7,263
2.3
5,352
1.7
5,008
2,156
-56.9
Interest revenue
364
0.1
385
0.1
177
193
+9.0
Loan repayments, holdings, privatisation proceeds
1,342
0.4
1,253
0.4
896
786
-12.3
Total revenue²
311,085
100.0
307,314
100.0
175,112
176,369
+0.7
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 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
19,450
+8.0
121,087
-0.9
211,300
+1.0
Assessed income tax
495
X
32,668
+12.3
61,150
+3.7
Non-assessed taxes on earnings
3,621
-4.6
16,347
+19.0
21,400
-0.5
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
684
+45.0
5,973
+44.7
7,500
+10.9
Corporation tax
656
X
19,719
+86.4
28,150
+16.0
Value added taxes
23,919
+19.9
136,349
+9.7
245,400
+11.8
Trade tax apportionment paid to Federation and Länder
977
+53.5
2,444
+25.2
4,419
+16.3
Increased trade tax apportionment
0
-99.9
-0
X
0
X
Total joint taxes
49,803
+17.5
334,585
+9.3
579,319
+6.4
Taxes accruing to the Federation
Energy duty
2,870
-8.6
15,713
-3.1
39,150
+4.0
Tobacco duty
1,247
-25.8
7,885
+0.2
14,460
-1.3
Alcohol duty
152
-1.2
1,075
-8.2
1,935
-13.5
Insurance tax
774
+3.6
10,394
+2.7
14,890
+2.3
Electricity duty
517
+6.7
3,849
+1.9
6,740
+2.7
Motor vehicle tax
881
+3.7
5,917
+0.1
9,545
+0.2
Aviation tax
41
+371.4
165
-3.6
450
+54.1
Solidarity surcharge
463
-61.4
6,180
-40.4
10,050
-46.2
Other taxes accruing to the Federation
110
-3.3
798
-2.2
1,401
-6.6
Total taxes accruing to the Federation
7,054
-15.8
51,976
-7.9
98,621
-6.6
Taxes accruing to the Länder
Inheritance tax
962
+30.9
5,445
+11.8
8,500
-1.2
Real property transfer tax
1,554
+22.0
10,501
+12.1
16,700
+4.0
Betting and lottery tax
142
-21.8
1,259
+9.5
2,170
+6.2
Beer duty
60
+12.7
327
+22.5
585
+3.3
Other taxes accruing to the Länder
29
+12.5
370
+5.4
522
+2.4
Total taxes accruing to the Länder
2,747
+21.0
17,901
+11.9
28,477
+2.5
EU own resources
Customs duties
420
+27.6
2,684
+3.5
4,950
+5.3
EU own resources (VAT-based)
185
+42.1
2,587
+54.8
4,430
+79.1
EU own resources (GNI-based)
1,347
+9.8
17,913
+28.1
33,290
+30.0
Total EU own resources
1,952
+15.8
23,184
+27.0
42,670
+30.1
Federation³
25,133
+15.7
164,751
+3.2
293,760
+3.8
Länder³
29,081
+10.4
190,567
+8.8
324,596
+2.6
EU
1,952
+15.8
23,184
+27.0
42,670
+30.1
Local authorities’ share of income tax and value added tax
3,858
+7.6
28,645
+2.3
50,341
+0.5
Total tax revenue (excluding local authority taxes)
60,023
+12.5
407,147
+6.8
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 12.5% on the year in July 2021. Receipts from joint taxes posted an above-average rise of 17.5%. This was mainly due to the large increase in revenue from import VAT, which climbed by 112.1% on the year in July. Because the payment date was close to the end of the month, a significant proportion of the import VAT payments for June 2021 were only reflected in the revenue figures for the following month. Large revenue growth was also recorded for wages tax, assessed income tax and corporation tax. Revenue from taxes accruing solely to the Federation fell by 15.8% on the year in July, while receipts from taxes accruing to the Länder rose by 21.0%.
Transfers of own resources to the EU, including customs duties, were up by just under €0.3bn (15.8%) on the year in July 2021. In general, monthly requisitions are based on the annual EU budget that is in force for the respective year.
In the seven months from January to July 2021, tax receipts (excluding local authority taxes) increased by 6.8% compared with the same period in 2020. Revenue from joint taxes rose by 9.3%, while receipts from taxes accruing solely to the Federation declined by 7.9%. Revenue from taxes accruing solely to the Länder was up by 11.9%.
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 15.7% on the year in July 2021.
The Federation’s share of joint taxes rose by 27.7% in year-on-year terms. This outcome was partly the result of a sharp rise in receipts from joint taxes. It was also due to a considerable increase in the Federation’s share of VAT revenue as the result of a low baseline: in July 2020, the Federation posted reduced VAT receipts because it transferred part of its share to the Länder in accordance with the Second Coronavirus Tax Assistance Act (Zweites Corona-Steuerhilfegesetz). The Federation’s revenue from taxes accruing solely to the Federation declined sharply, by 15.8%. In addition, transfers of own resources to the EU and supplementary federal grants to the Länder both increased.
Länder tax receipts also increased markedly on the year in July 2021, by 10.4%. The revenue from joint taxes that is allocated to the Länder only rose by 10.6%; here, the 2020 baseline was boosted significantly by the above-mentioned transfer of VAT revenues by the Federation. In contrast, the yield from taxes that accrue exclusively to the Länder posted a clear gain of 21.0%. In addition, the Länder received higher supplementary federal grants, which increased by 48.8%. Local authorities’ take from their share of joint taxes was 7.6% higher than in the same period last year.
Gross revenue from wages tax was up by 8.1% on the year in July, despite the reductions in revenue caused by tax relief measures for taxpayers in the current year (i.e. the increase in the basic personal allowance and the related shift in the other tax thresholds). Receipts in July included wages tax that was remitted for June 2021. Revenue growth was driven by a) the decline in the number of employees participating in the short-time work scheme, which in July 2021 fell to its lowest level since February 2020, and b) an increase in the number of people in employment, which in June rose by around 100,000 in year-on-year terms. Child benefit payments – which are financed from wages tax receipts – rose by 8.5% on the year. 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. Overall, there was a 8.0% year-on-year rise in cash receipts from wages tax in July. In cumulative terms, cash receipts from wages tax were down by 0.9% on the year in the first seven months of 2021.
Gross receipts from corporation tax amounted to around €0.7bn in July 2021. In July 2020, refunds of around €0.3bn were paid out. Year-on-year tax revenue fluctuations of this kind are common. In addition, it is difficult to make a comparison with the previous year because of the impact that pandemic-related measures had on revenue. Research and investment allowances were funded from gross receipts. These payments totalled around €1m and therefore had only a minimal impact on cash receipts from corporation tax, which amounted to approximately €0.7bn in July 2021. Cumulatively, cash receipts from corporation tax increased by 86.4% in year-on-year terms in the first seven months of 2021.
Revenue from assessed income tax in July was mainly generated from assessment activities. Gross receipts from this tax increased by 31.0% to approximately €1.9bn. As with corporation tax, the year-on-year comparison is influenced by the impact of pandemic-related measures. Employee refunds, which are subtracted from the gross figure, were 17.4% lower on the year in July. Investment allowance payments, research allowance payments and owner-occupied homes premiums, which are insignificant in terms of amount, are also subtracted from the gross figure. On balance, receipts of assessed income tax amounted to approximately €0.5bn in July 2021. In cumulative terms, cash receipts from assessed income tax were up by 12.3% on the year in the first seven months of 2021.
The gross yield from non-assessed taxes on earnings fell by 6.2% on the year in July 2021. In 2020, pandemic-related restrictions led to many shareholders’ meetings being postponed to the second half of the year, which in turn shifted the timing of dividend payments. This was the main cause of a 28.9% decline in gross revenue from this tax in the first half of 2020. This led in turn to a significant increase in receipts in the first half of 2021, when they climbed by 27.0%. Taking July into account, cumulative gross revenue in the year to date only increased by 18.0%. A further weakening of the cumulative growth rate can be expected over the remaining course of 2021. Refunds by the Federal Central Tax Office, which are financed from gross revenue, totalled about €53m (down by 56.3% on the year). Overall, cash receipts from non-assessed taxes on earnings declined by 4.6% on the year in July 2021. Cumulatively, cash receipts from non-assessed taxes on earnings were up by 19.0% on the year in the first seven months of 2021.
Final withholding tax on interest and capital gains
Revenue from final withholding tax on interest and capital gains was up by 45.0% on the year in July 2021. Cumulative cash receipts from this tax were up by 44.7% on the year in the first seven months of 2021.
Revenue from value added taxes was up by 19.9% on the year in July 2021, while receipts from domestic VAT recorded a decline of 3.9%. Revenue from domestic VAT in July 2020 was significantly higher than would otherwise have been the case, as a result of deferrals granted as part of measures to combat the pandemic: the deferred taxes that fell due in July exceeded the deferrals granted that month. The decline in revenue from domestic VAT in July 2021 was caused by the inflated baseline.
Starting in 2021, the due date for paying import VAT was moved to the 26th day of the month. As a result, some revenue for June was not posted to government accounts until July. Following a 24.7% year-on-year decline in import VAT receipts in June, revenue climbed by 112.1% on the year in July. Cumulatively, cash receipts from value added taxes rose by 9.7% on the year in the first seven months of 2021.
In July 2021, revenue from taxes accruing solely to the Federation was down by 15.8% compared with the same month last year. Receipts from tobacco duty and energy duty were down significantly on the year, by 25.8% and 8.6%, respectively. The decline in tobacco duty revenue is partly due to a comparatively high baseline figure in July 2020. In addition, month-to-month shifts in the timing of revenue collection are not unusual. On a cumulative basis, tobacco duty revenue in the January–July period was basically unchanged on the year, increasing by 0.2%. Revenue from the solidarity surcharge also fell, by 61.4% on the year. Revenue increased significantly in the case of insurance tax (+3.6%), motor vehicle tax (+3.7%) and electricity duty (+6.7%). 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 7.9% on the year in the January–July period.
Receipts from taxes accruing solely to the Länder were up markedly in July 2021, rising by 21.0% on the year. Revenue gains were recorded for real property transfer tax (+22.0%), inheritance tax (+30.9%), fire protection tax (+12.5%) and beer duty (+12.7%). Betting and lottery tax revenue fell by 21.8%. In cumulative terms, cash receipts from taxes accruing solely to the Länder were up by a total of 11.9% on the year in the first seven months of 2021.
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in July 2021
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in July 2021
in €m
Debt level
Borrowing
(increase)
Debt repayment
(decrease)
Debt level
Change in debt level
(balance)
Interest
30 June 2021
July
July
31 July 2021
July
July
Total
1,299,787
43,438
-37,301
1,305,924
6,137
-3,634
broken down by purpose
Federal budget
1,255,871
43,460
-37,301
1,262,031
6,159
-3,634
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))
22,778
-2
-
22,776
-2
-
Investment and Redemption Fund
16,058
10
-
16,069
10
-
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
5,080
-30
-
5,049
-30
-
broken down by debt type
Conventional federal securities
1,210,199
42,817
-37,176
1,215,840
5,641
-3,759
30-year federal bonds
262,460
2,964
-
265,424
2,964
-3,394
10-year federal bonds
574,695
11,399
-18,969
567,125
-7,570
-600
Federal notes
155,113
4,303
-
159,416
4,303
124
Federal Treasury notes
81,297
3,588
-
84,885
3,588
44
Treasury discount papers issued by the Federation
136,635
20,563
-18,207
138,991
2,356
66
Inflation-linked federal securities
62,569
546
-
63,115
546
196
30-year inflation-linked federal bonds
9,911
226
-
10,137
226
116
10-year inflation-linked federal bonds
52,658
320
-
52,978
320
80
Green federal securities
16,526
75
-
16,601
75
-2
30-year green federal bonds
5,500
75
-
5,575
75
-2
10-year green federal bonds
6,390
-
-
6,390
-
-
Green federal notes
4,636
-
-
4,636
-
-
Securitised loans
6,020
-
-125
5,895
-125
-69
Loans through repurchase transactions
-
-
-
-
-
-
Other loans and ordinary debts
4,474
-
-
4,474
-
-
Additional information
Liabilities from the indexing of inflation-linked federal securities
5,056
5,267
211
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)
4,227
4,240
13
-
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).
Borrowing trends for the Federation (loan financing) in July 2021
Borrowing trends for the Federation (loan financing) in July 2021
in €m
Total
80,116
4,806
-1,408
83,515
3,398
118
broken down by purpose
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)
44,900
3,800
-
48,700
3,800
112
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)
35,216
1,006
-1,408
34,815
-402
5
Any discrepancies in totals are due to rounding.
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.
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.