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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 Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2021) 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 August 2021 totalled approximately €200.0bn, up by 1.7% (about €3.4) on the year. Tax receipts (taking into account transfers of own resources to the EU) increased by 4.3% (roughly €7.7bn) on the year. Revenue from income tax and corporation tax rose by 10.4% (roughly €8.7bn), while the yield from value added taxes increased by 12.5% (roughly €8.2bn) on the year. Revenue from the solidarity surcharge was down by 42.6% (approximately €4.9bn), largely due to the abolition this year of the solidarity surcharge for approximately 90% of wages tax and income tax payers. Growth in tax revenue was also tempered by the trend in payments to the EU (GNI-based own resources and VAT-based own resources), which rose by about €6.6bn in year-on-year terms.
The category of “other revenue” was down by 23.0% (roughly €4.3bn) on the year in the January–August 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 eight months of 2021 totalled approximately €317.4bn, up by 18.9% (roughly €50.4bn) on the year. A breakdown by economic category shows that higher spending in the January–August period was driven mainly by consumption spending, which was up by 14.7% (approximately €36.0bn). Ongoing grants to social security funds and subsidies to businesses made up most of this rise. Subsidies to businesses grew by 42.9% (roughly €14.8bn) on the year; most of this increased spending consisted of assistance to businesses affected by the fallout from the pandemic. About €29.5bn of the funds earmarked for this purpose were disbursed by 31 August 2021. Grants to social security funds were up by 14.8% (around €14.6bn) on the year. This includes disbursements to the health fund to cover costs caused by the Covid-19 pandemic, which increased by approximately €10.2bn in the January–August 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 in August totalled €35.6bn, an increase of 67.8% (roughly €14.4bn) over the same period last year. 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 €13.2bn on the year. In contrast, fixed asset investment was down by 48.5% (about €3.1bn) 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 €2.1bn on the year in August 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 €117.4bn for the period from January to August 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)
August 2020
August 2021
in €m
share in %
in €m
share in %
in €m
in %
General public services
95,479
21.6
103,911
19.0
56,534
59,710
+5.6
Economic cooperation and development
12,127
2.7
12,324
2.3
5,363
6,297
+17.4
Defence
45,471
10.3
47,019
8.6
27,200
28,018
+3.0
Government, central administration
19,199
4.3
22,707
4.1
12,730
13,558
+6.5
Revenue administration
5,342
1.2
5,922
1.1
3,492
3,777
+8.1
Education, science, research, cultural affairs
28,645
6.5
31,829
5.8
13,964
15,153
+8.5
Support for school and university students and training programme participants
6,045
1.4
5,182
0.9
2,303
3,117
+35.3
Science, research and development outside of higher education institutions
15,236
3.4
18,207
3.3
7,677
7,601
-1.0
Social security, family affairs and youth, labour market policy
218,365
49.4
284,649
52.0
153,212
199,608
+30.3
Social security funds including unemployment insurance
129,829
29.4
134,149
24.5
92,030
111,323
+21.0
of which:
General pension insurance
93,004
21.1
97,401
17.8
68,428
71,658
+4.7
Health insurance
15,884
3.6
19,010
3.5
10,536
13,430
+27.5
Unemployment insurance
6,913
1.6
3,350
0.6
2,895
16,131
+457.2
Labour market policy
40,876
9.3
45,360
8.3
24,882
28,391
+14.1
of which:
Basic income support for jobseekers under Book II of the Social Code
20,658
4.7
23,700
4.3
14,121
15,219
+7.8
Government housing and heating allowances under Book II of the Social Code
10,097
2.3
11,200
2.0
4,540
6,871
+51.4
Family assistance, welfare services, etc.
10,343
2.3
11,395
2.1
6,865
7,442
+8.4
Social benefits for the consequences of war and political events
2,039
0.5
2,269
0.4
1,379
1,435
+4.0
Other social affairs
24,149
5.5
79,621
14.5
20,870
43,492
+108.4
Health, environment, sport, recreation
19,001
4.3
25,114
4.6
13,548
11,020
-18.7
Housing, urban development, regional planning and local community services
1,783
0.4
2,972
0.5
799
975
+21.9
Housing, home ownership savings premium
893
0.2
1,675
0.3
550
746
+35.6
Food, agriculture and forestry
1,469
0.3
2,611
0.5
471
837
+77.7
Energy and water management, trade and services
5,509
1.2
14,620
2.7
3,772
3,243
-14.0
Regional support measures
1,400
0.3
2,968
0.5
588
630
+7.2
Mining, manufacturing and construction
2,316
0.5
1,491
0.3
2,174
543
-75.0
Transport and communication
22,961
5.2
33,683
6.1
12,535
12,947
+3.3
Roads
9,791
2.2
9,815
1.8
5,287
4,072
-23.0
Railways and public transport
8,156
1.8
16,321
3.0
4,231
4,375
+3.4
Financial management
48,585
11.0
48,336
8.8
12,138
13,869
+14.3
Interest expenditure and borrowing-related expenditure
6,457
1.5
10,267
1.9
7,906
6,679
-15.5
Total expenditure²
441,798
100.0
547,726
100.0
266,972
317,361
+18.9
¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2021) 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
245,761
281,769
+14.7
Human resources expenditure
35,409
8.0
35,960
6.6
24,056
24,904
+3.5
Salary payments
26,249
5.9
26,817
4.9
17,610
18,400
+4.5
Pensions
9,160
2.1
9,144
1.7
6,446
6,504
+0.9
Operating expenditure
36,370
8.2
44,823
8.2
19,869
21,070
+6.0
Maintenance of immovable property
1,801
0.4
1,164
0.2
1,077
614
-43.0
Military procurement
16,833
3.8
18,155
3.3
8,197
8,354
+1.9
Other
17,736
4.0
25,504
4.7
10,596
12,103
+14.2
Interest expenditure
6,413
1.5
10,261
1.9
7,873
6,663
-15.4
Ongoing grants and subsidies
312,053
70.6
366,125
66.8
193,168
228,172
+18.1
to public administrations
75,607
17.1
40,670
7.4
27,171
30,423
+12.0
to other areas
236,446
53.5
325,455
59.4
165,997
197,748
+19.1
of which:
Companies
49,569
11.2
104,429
19.1
34,564
49,396
+42.9
Pensions, benefits, etc.
30,735
7.0
36,535
6.7
20,874
22,546
+8.0
Social security funds
134,613
30.5
153,495
28.0
98,223
112,788
+14.8
Other asset transfers
1,205
0.3
4,022
0.7
794
961
+21.0
Investment expenditure
50,348
11.4
59,268
10.8
21,211
35,592
+67.8
Financial assistance
38,756
8.8
51,165
9.3
14,908
32,347
+117.0
Grants and subsidies
30,652
6.9
39,856
7.3
11,594
14,219
+22.6
Loans, guarantees
7,630
1.7
6,680
1.2
3,306
17,804
+438.5
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
6,303
3,245
-48.5
Construction projects
8,192
1.9
4,554
0.8
4,469
1,991
-55.4
Acquisition of movable assets
2,816
0.6
3,412
0.6
1,499
1,219
-18.7
Acquisition of real property
585
0.1
137
0.0
335
34
-89.9
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
266,972
317,361
+18.9
¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2021) 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
84,110
92,845
+10.4
of which:
Wages tax
89,075
28.6
84,651
27.5
57,154
56,714
-0.8
Assessed income tax
25,067
8.1
24,814
8.1
12,253
14,137
+15.4
Non-assessed tax on earnings
10,761
3.5
9,200
3.0
7,361
8,983
+22.0
Final withholding tax on interest and capital gains
2,976
1.0
2,794
0.9
2,046
2,925
+43.0
Corporation tax
12,134
3.9
12,899
4.2
5,295
10,086
+90.5
Value added taxes (VAT)
94,391
30.3
114,323
37.2
65,654
73,854
+12.5
Trade tax apportionment paid to Federation and Länder
1,574
0.5
1,789
0.6
868
1,131
+30.3
Energy duty
37,635
12.1
39,850
13.0
19,571
18,941
-3.2
Tobacco duty
14,651
4.7
14,190
4.6
9,128
9,129
+0.0
Solidarity surcharge
18,676
6.0
9,950
3.2
11,466
6,582
-42.6
Insurance tax
14,553
4.7
14,890
4.8
11,488
11,788
+2.6
Electricity duty
6,561
2.1
6,880
2.2
4,340
4,395
+1.3
Motor vehicle tax
9,526
3.1
9,545
3.1
6,653
6,670
+0.3
Alcohol duty including alcopops duty
2,249
0.7
2,102
0.7
1,346
1,257
-6.6
Coffee duty
1,060
0.3
1,070
0.3
665
697
+4.8
Aviation tax
292
0.1
630
0.2
204
240
+17.6
Sparkling wine duty and intermediate products duty
428
0.1
394
0.1
255
214
-16.1
Other taxes accruing to the Federation
1
0.0
2
0.0
1
2
+100.0
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
14,804
20,230
+36.7
EU own resources (VAT-based)
2,473
X
4,430
X
1,801
2,956
+64.1
Grants to Länder for public transport
11,457
X
9,268
X
8,471
6,179
-27.1
Grants to Länder for motor vehicle tax and HGV toll
8,992
X
8,992
X
6,744
6,744
-
Other revenue
27,831
8.9
23,290
7.6
18,596
14,318
-23.0
Revenue from economic activity
7,263
2.3
5,352
1.7
5,017
2,164
-56.9
Interest revenue
364
0.1
385
0.1
209
219
+4.8
Loan repayments, holdings, privatisation proceeds
1,342
0.4
1,253
0.4
897
825
-8.0
Total revenue²
311,085
100.0
307,314
100.0
196,581
199,959
+1.7
¹ Supplementary budget pursuant to the Act Adopting a Supplement to the Federal Budget for the 2021 Fiscal Year (Gesetz über die Feststellung eines Nachtrags zum Bundeshaushaltsplan für das Haushaltsjahr 2021) 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
17,680
+4.4
138,767
-0.2
211,300
+1.0
Assessed income tax
602
X
33,270
+15.4
61,150
+3.7
Non-assessed taxes on earnings
1,676
+47.2
18,023
+21.1
21,400
-0.5
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
675
+29.5
6,648
+43.0
7,500
+10.9
Corporation tax
453
+4,872.9
20,171
+90.5
28,150
+16.0
Value added taxes
23,492
+8.5
159,841
+9.5
245,400
+11.8
Trade tax apportionment paid to Federation and Länder
211
+46.9
2,655
+26.7
4,419
+16.3
Increased trade tax apportionment
0
X
-0
X
0
X
Total joint taxes
44,789
+11.6
379,375
+9.6
579,319
+6.4
Taxes accruing to the Federation
Energy duty
3,227
-3.6
18,941
-3.2
39,150
+4.0
Tobacco duty
1,245
-1.3
9,129
+0.0
14,460
-1.3
Alcohol duty
181
+9.8
1,256
-6.0
1,935
-13.5
Insurance tax
1,395
+1.8
11,788
+2.6
14,890
+2.3
Electricity duty
546
-2.9
4,395
+1.3
6,740
+2.7
Motor vehicle tax
753
+1.2
6,670
+0.3
9,545
+0.2
Aviation tax
75
+128.5
240
+17.7
450
+54.1
Solidarity surcharge
402
-63.5
6,582
-42.6
10,050
-46.2
Other taxes accruing to the Federation
115
-0.8
913
-2.1
1,401
-6.6
Total taxes accruing to the Federation
7,938
-8.8
59,914
-8.0
98,621
-6.6
Taxes accruing to the Länder
Inheritance tax
765
+10.8
6,210
+11.7
8,500
-1.2
Real property transfer tax
1,467
+23.5
11,967
+13.4
16,700
+4.0
Betting and lottery tax
187
+19.6
1,445
+10.7
2,170
+6.2
Beer duty
59
-10.9
386
+15.8
585
+3.3
Other taxes accruing to the Länder
28
+5.8
398
+5.4
522
+2.4
Total taxes accruing to the Länder
2,506
+17.8
20,407
+12.6
28,477
+2.5
EU own resources
Customs duties
443
-8.4
3,127
+1.7
4,950
+5.3
EU own resources (VAT-based)
370
+184.2
2,956
+64.1
4,430
+79.1
EU own resources (GNI-based)
2,317
+184.2
20,230
+36.7
33,290
+30.0
Total EU own resources
3,130
+119.1
26,314
+33.7
42,670
+30.1
Federation³
22,298
+10.9
187,049
+4.1
293,760
+3.8
Länder³
26,554
+0.4
217,121
+7.7
324,596
+2.6
EU
3,130
+119.1
26,314
+33.7
42,670
+30.1
Local authorities’ share of income tax and value added tax
3,694
+6.7
32,339
+2.8
50,341
+0.5
Total tax revenue (excluding local authority taxes)
55,676
+8.2
462,823
+7.0
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 8.2% on the year in August 2021. Joint taxes once again posted above-average growth, increasing by 11.6%. Revenue from import VAT, wages tax, assessed income tax and corporation tax also rose on the year, with some taxes showing considerable growth. Revenue from taxes accruing solely to the Federation fell by 8.8% on the year in August, while receipts from taxes accruing to the Länder rose by 17.8%.
Transfers of own resources to the EU, including customs duties, were up by almost €1.7bn (119.1%) on the year in August 2021. Drawdowns of GNI- and VAT-based own resources were higher than in the same month of 2020 due to the settlement of Germany’s contribution to amending budgets No 1/2021 and No 2/2021 (including financing the response to Covid-19 and adjustments following the final adoption of the multiannual financial framework). In general, monthly requisitions are based on the annual EU budget that is in force for the respective year.
In the eight months from January to August 2021, tax receipts (excluding local authority taxes) increased by 7.0% compared with the same period in 2020. Revenue from joint taxes rose by 9.6%, while receipts from taxes accruing solely to the Federation declined by 8.0%. Revenue from taxes accruing solely to the Länder was up by 12.6%.
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 10.7% on the year in August 2021. The Federation benefited – as did the Länder and local authorities – from growth in overall receipts from joint taxes, which were up by 11.6%; this led to significant year-on-year growth of 14.8% in the Federation’s share of revenue from joint taxes. In contrast, the Federation’s revenue from federal taxes fell by 8.8%. In addition, transfers of own resources to the EU and supplementary federal grants to the Länder both increased, among other things.
Länder tax receipts also rose slightly overall in August 2021 in year-on-year terms, posting an increase of 0.4%. Although joint taxes and Länder taxes experienced strong revenue growth, there was a significant decline in federal subsidies for public transport compared with August 2020. The latter development was mainly due to the fact that the Länder received additional federal subsidies of €2.5bn in August 2020 as part of measures to tackle the economic crisis caused by the pandemic (the opposite effect could be observed with the year-on-year trend in federal tax revenues in August 2021). In contrast, the Länder share of revenue from joint taxes posted significant growth of 9.7%. The yield from taxes that accrue exclusively to the Länder also posted a clear gain of 17.8%. In addition, the Länder received higher supplementary federal grants, which were up by 48.8%. Local authorities’ take from their share of joint taxes was 6.7% higher than in the same period last year.
Gross revenue from wages tax was up by 4.5% on the year in August, 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). This revenue growth probably mainly reflects the ongoing recovery in the labour market, which can be seen in falling unemployment, rising employment levels and the lowest number of workers participating in the short-time work scheme since the beginning of the crisis (according to extrapolations by the Federal Employment Agency and estimates by the Ifo Institute). Child benefit payments – which are financed from wages tax receipts – rose by 4.9% on the year. The €15 per child increase in child benefit enacted under the Second Family Tax Burden Reduction Act (Zweites Familienentlastungsgesetz) has had an impact in this respect since the start of the year. Overall, there was a 4.4% year-on-year rise in cash receipts from wages tax in August. In cumulative terms, cash receipts from wages tax fell by 0.2% on the year in the first eight months of 2021.
Gross revenue from corporation tax amounted to €0.5bn in August 2021, compared with €0.01bn in August 2020. Significant year-on-year fluctuations in revenue from this tax can often be observed in months when the revenue level is not mainly determined by prepayments for the current year. In addition, year-on-year comparisons are currently difficult to make because of the impact that pandemic-related measures have had on revenue. The tax allowance for research and development is refunded, and investment allowance payments are financed, from gross revenue from corporation tax. Together these amounted to around €700,000, meaning that on balance the impact on cash receipts from corporation tax was minimal. Cumulatively, cash receipts from corporation tax increased by 90.5% in year-on-year terms in the first eight months of 2021.
Gross revenue from assessed income tax amounted to approximately €1.8bn in August, representing a year-on-year rise of 72.1%. 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 10.4% lower on the year in August. 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 €0.6bn in August 2021. In cumulative terms, cash receipts from assessed income tax were up by 15.4% on the year in the first eight months of 2021.
Gross receipts from non-assessed taxes on earnings were up by 25.9% on the year in August 2021. Refunds by the Federal Central Tax Office, which are financed from gross revenue, totalled about €46m (down by 80.0% on the year). Overall, cash receipts from non-assessed taxes on earnings were up by 47.2% in August 2021 compared with the same month last year. Cumulatively, cash receipts from non-assessed taxes on earnings were up by 21.1% on the year in the first eight months of 2021.
Final withholding tax on interest and capital gains
Revenue from final withholding tax on interest and capital gains was up by 29.5% on the year in August 2021. Cumulative cash receipts from this tax were up by 43.0% on the year in the first eight months of 2021.
Revenue from value added taxes was up by 8.5% on the year in August 2021, with receipts from domestic VAT recording a slight gain of 0.3%. However, it is important to note that the baseline figure in August 2020 was artificially high as a result of tax measures to mitigate the impact of the Covid-19 pandemic. Revenue from domestic VAT in August 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 August 2020 exceeded the deferrals granted that month. The high revenue level in August 2021 therefore probably also reflects the tangible economic recovery. Receipts from import VAT were up by 42.3% on the year in August 2021. This is likely a consequence of the fact that nominal imports of goods have risen sharply again since the beginning of the crisis, and have even been noticeably above pre-crisis levels since spring 2021. Cumulatively, cash receipts from value added taxes rose by 9.5% on the year in the first eight months of 2021.
In August 2021, revenue from taxes accruing solely to the Federation was down by 8.8% compared with the same month last year. Electricity duty, tobacco duty and energy duty all posted significant declines in revenue, falling by 2.9%, 1.3% and 3.6%, respectively. Revenue from the solidarity surcharge was also down, posting a decline of 63.5% on the year. Revenue increased noticeably in the case of insurance tax (+1.8%), motor vehicle tax (+1.2%) and aviation tax (+128.5%). The rise in receipts from aviation tax probably reflects the fact that air traffic at German airports has recently been higher than in the same period last year. 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 8.0% on the year in the January–August period.
Receipts from taxes accruing solely to the Länder were up markedly in August 2021, rising by 17.8% on the year. Revenue from real property transfer tax, inheritance tax, fire protection tax and betting and lottery tax rose by 23.5%, 10.8%, 5.8% and 19.6%, respectively. Receipts from beer duty fell by 10.9%. In cumulative terms, cash receipts from taxes accruing solely to the Länder were up by a total of 12.6% on the year in the first eight months of 2021.
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in August 2021
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in August 2021
in €m
Total
1,305,924
35,741
-17,250
1,324,416
18,492
-518
broken down by purpose
Federal budget
1,262,031
35,837
-17,250
1,280,617
18,587
-518
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))
22,776
-7
-
22,769
-7
-
Investment and Redemption Fund
16,069
-
-
16,069
-
-
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
5,049
-89
-
4,961
-89
-
broken down by debt type
Conventional federal securities
1,215,840
35,647
-17,200
1,234,287
18,447
-484
30-year federal bonds
265,424
2,487
-
267,911
2,487
-51
10-year federal bonds
567,125
7,281
-
574,405
7,281
-641
Federal notes
159,416
3,127
-
162,543
3,127
108
Federal Treasury notes
84,885
2,722
-
87,607
2,722
41
Treasury discount papers issued by the Federation
138,991
20,030
-17,200
141,821
2,830
59
Inflation-linked federal securities
63,115
70
-
63,185
70
9
30-year inflation-linked federal bonds
10,137
-25
-
10,112
-25
-17
10-year inflation-linked federal bonds
52,978
95
-
53,073
95
26
Green federal securities
16,601
25
-
16,626
25
1
30-year green federal bonds
5,575
-
-
5,575
-
-
10-year green federal bonds
6,390
-
-
6,390
-
-
Green federal notes
4,636
25
-
4,661
25
1
Securitised loans
5,895
-
-50
5,845
-50
-43
Loans through repurchase transactions
-
-
-
-
-
-
Other loans and ordinary debts
4,474
-
-
4,474
-
-
Additional information
Liabilities from the indexing of inflation-linked federal securities
5,267
5,457
191
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)
4,240
4,240
-
-
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 August 2021
Borrowing trends for the Federation (loan financing) in August 2021
in €m
Total
83,515
4,800
-1,408
86,906
3,392
165
broken down by purpose
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)
48,700
3,800
-
52,500
3,800
141
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)
34,815
1,000
-1,408
34,406
-408
24
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.