Navigation

zur Suche

You are here:

22 April 2022

Overview of federal budgetary and financial data up to and including March 2022

Translated extracts from the Federal Ministry of Finance’s April 2022 monthly report

Federal budget trends up to and including March 2022

Table: Trends in the federal budget

Actual 2021

Actual¹
January–March 2022

Expenditure (€bn)²

556.6115.8

Year-on-year change in % (year to date)

 -10.6

Revenue (€bn)³

341.087.4

Year-on-year change in % (year to date)

 28.4

Tax revenue (€bn)

313.582.6

Year-on-year change in % (year to date)

 30.0

Balance of pass-through funds (€bn)

0.00.0

Fiscal balance (€bn)

-215.6-28.4

Financing/use of surplus:

215.628.4

Cash resources (€bn)

-123.3

Seigniorage (€bn)

0.20.0

Movements in reserves⁴ (€bn)

00.0

Net borrowing⁵ (€bn)

215.4-94.9

Until the 2022 budget has been adopted by the German Bundestag and promulgated in the Federal Law Gazette, the German government is working on the basis of an interim budget, which is based primarily on Article 111 of the Basic Law (see the article “Vorläufige Haushaltsführung 2022” (“2022 Interim Budget Management”) in the German version of the January 2022 monthly report). Given that the targets for the 2022 federal budget have not been determined, no target values are included in the following tables.

Revenue

Federal revenue in the period from January to March 2022 totalled approximately €87.4bn, up by 28.4% (about €19.3bn) on the year. Tax receipts (taking into account transfers of own resources to the EU) increased by 30.0% (roughly €19.1bn) on the year. The yield from value added taxes was up by 40.9% (approximately €10.4bn) on the year. Revenue from income tax and corporation tax rose by 12.7% (about €4.5bn). Payments to the EU (GNI-based own resources and VAT-based own resources) were down by about €3.9bn on the year, which also contributed to the increase in tax revenue.

The category of “other revenue” recorded a gain of 5.8% (about €0.3bn) on the year in the January–March period.

Expenditure

Federal expenditure in the first three months of 2022 totalled approximately €115.8bn, 10.6% (about €13.8bn) lower than in the same period last year. A breakdown by economic category shows that the lower spending in the first quarter of 2022 is primarily the result of a drop in consumption spending, which was down by 6.8% (about €7.7bn). The figure for ongoing grants to “other areas” was largely influenced by a 41.1% fall in subsidies to businesses (about €7.3bn) on the year. Assistance to businesses affected by the fallout from the coronavirus pandemic amounted to roughly €4.0bn in the first three months of 2022, compared with approximately €11.0bn in the same period last year. The decline in grants to “other areas” was tempered by the fact that subsidies for the procurement of Covid-19 vaccines rose by around €1.6bn on the year in the first quarter of 2022. Grants to public administrations fell by 17.1% (about €2.4bn) on the year, due mainly to the fact that in 2021 a €2.5bn grant to the Energy and Climate Fund was allocated in March, which increased the baseline figure. Interest expenditure was down by 45.1% (about €1.3bn) on the year.

Investment spending totalled about €8.8bn in the first three months of 2022, down by 40.5% (roughly €6.0bn) on the year. This can be attributed primarily to a €6.2bn year-on-year decline in liquidity assistance provided to the Federal Employment Agency. At the end of the 2021 budget year, the assistance granted over the course of the year that was not repaid by the end of the budget year was converted into a subsidy for the Federal Employment Agency. Fixed asset investment remained roughly at the same level as last year.

Budget balance

The federal budget recorded a deficit of approximately €28.4bn for the January–March 2022 period.

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 true towards the start of the year. It should also be borne in mind that an interim budget is currently in place.

Trends in federal expenditure by function

Tabelle vergrößern

Trends in federal expenditure by economic category

Tabelle vergrößern

Trends in federal revenue

Tabelle vergrößern

to the top

Tax revenue in March 2022

2022 trends in tax revenue (excluding local authority taxes)

Tabelle vergrößern

Total tax revenue (excluding local authority taxes) was up by 17.2% on the year in March 2022. This is primarily a result of the 18.4% year-on-year rise in revenue from joint taxes. Most tax types posted considerable revenue gains in comparison with the 2021 baselines, which were significantly impacted by the Covid-19 pandemic and the tax measures that were taken in response. The conflict in Ukraine has not yet had a tangible effect on tax revenues in Germany. Revenue from value added taxes recorded a particularly sharp increase. Among other reasons, some import VAT revenue from the previous month was not recorded until March, due to the short timeframe between the payment due date and the end of the month in February. This was also the case in 2021; however, in 2022 the amount of revenue affected was considerably larger. Wages tax and non-assessed taxes on earnings also posted significant year-on-year revenue growth. Finally, both assessed income tax and corporation tax posted clear year-on-year growth in March, the first month in 2022 when prepayments were due. Receipts from federal taxes in March 2022 increased by 9.0% on the year, while receipts from taxes accruing to the Länder rose by 14.3%.

EU own resources

Transfers of own resources to the EU, including customs duties, were down by approximately 2.8% on the year in March 2022. In general, monthly requisitions are based on the annual EU budget that is in force for the respective year and are distributed relatively evenly across individual months. The 2022 annual budget is similar to last year’s in terms of volume. However, so far this year the drawdown of EU own resources has been 26.4% lower in cumulative terms than in the same period last year. As a result, requisitions in the coming months can be expected to be somewhat higher than in the equivalent months of 2021.

Overview of the January–March 2022 period

Overall, the first quarter of 2022 was marked by a relatively strong increase in tax revenues, which were up by 18.1% on the year. This is mainly due to the fact that receipts in the first three months of 2021 were even more strongly impacted by the effects of the Covid-19 pandemic and by the statutory and administrative measures that were taken in response. For example, the temporary reduction of VAT rates in the second half of 2020 reduced revenue until February 2021 due to the permanent filing extension that was granted. Other factors included the loss of one month’s revenue from import VAT as a result of the payment deadline being extended, and the short-time work that was necessary because of the lockdown. Broken down by tax type, in the first quarter of 2022 receipts from joint taxes rose by 20.5% on the year, revenue from federal taxes increased by 2.5% and the yield from taxes accruing to the Länder was up by 15.7%.

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 20.9% on the year in March 2022. This increase was largely due to the fact that the Federation’s share of joint taxes increased significantly on the year due to the overall rise in receipts from these taxes. The Federation’s take from joint taxes grew by 20.5%. This was higher than the 18.4% increase in overall revenue from joint taxes due to the fact that, once again, the distribution of VAT revenue changed in the Federation’s favour, although this effect is only moderate at this point (see the article on tax revenue in January 2022 in the February issue of the Finance Ministry’s monthly report (in German)). In addition, revenue from taxes accruing solely to the Federation was up by 9.0% on the year. Supplementary federal grants to the Länder and federal subsidies to the Länder for public transport recorded year-on-year increases.

Länder tax receipts also increased markedly on the year in March 2022, by 16.5%. Total Länder revenue from joint taxes also rose substantially, by 17.9%. Moreover, the yield from taxes that accrue exclusively to the Länder posted significant growth of 14.3%. Mirroring the higher payments made by the Federation, the Länder saw an increase in receipts from supplementary federal grants (+4.0%) and from federal subsidies for public transport (+5.1%). Local authorities’ take from their share of joint taxes was 10.9% higher than in the same period last year, while their receipts from value added taxes dropped by 1.8% on the year.

to the top

Joint taxes

Wages tax

Gross revenue from wages tax was up by 10.5% in year-on-year terms in March 2022. This upward trend primarily reflects the improvement in labour market conditions compared with March 2021: there has been a significant decline in short-time work, and employment has risen further. Child benefit payments – which are financed from wages tax receipts – rose only slightly, by 1.1% on the year. Overall, cash receipts from wages tax posted a year-on-year gain of 12.8% in March 2022. In the first quarter of 2022, cash receipts from wages tax were up by 10.5% compared with the same period last year.

Corporation tax

Gross receipts from corporation tax were up by 23.8% in March 2022, the first month in the year when prepayments are due. Prepayments for the current year were up substantially, by almost 30%. The balance between back payments and refunds resulting from assessment activities was slightly negative, as in the same period last year. Overall, this tax type posted significant revenue growth. Payments of research and investment allowances, which are financed from gross receipts, amounted to just €6.9m, meaning they had only a marginal impact on cash receipts from corporation tax. In March 2022, cash receipts from corporation tax were up by 23.7% on the year. Cash receipts from corporation tax rose by 9.6% in year-on-year terms in the first quarter of 2022.

Assessed income tax

Gross receipts from assessed income tax rose by 10.0% on the year in March 2022. As was the case with corporation tax, prepayments of assessed income tax for the current year also rose significantly, by over 10% in year-on-year terms. Although the balance between back payments and refunds (including employee refunds) was negative, it was smaller in absolute terms than in the same period last year. Employee refunds declined by 57.9% on the year. Investment allowance payments, research allowance payments and owner-occupied homes premiums, which are insignificant in terms of amount, were also deducted from the gross figure. On balance, cash receipts from assessed income tax were up by 13.3% on the year in March 2022. Cumulative cash receipts from assessed income tax increased by 17.3% on the year in the first quarter of 2022.

Non-assessed taxes on earnings

Gross receipts from non-assessed taxes on earnings recorded a 15.4% year-on-year rise in March 2022. Refunds by the Federal Central Tax Office, which are financed from gross revenue, totalled about €51m (down by 61.3% on the year). Overall, cash receipts from non-assessed taxes on earnings were up by 20.7% in March 2022 compared with the same month last year. Cumulatively, cash receipts from non-assessed taxes on earnings increased by 20.9% on the year in the first quarter of 2022.

Final withholding tax on interest and capital gains

In March 2022, revenue from final withholding tax on interest and capital gains was 7.3% lower than in the same month last year. In the first quarter of 2022, cash receipts from final withholding tax on interest and capital gains were down by 13.6% on the year.

Value added taxes

The general economic recovery was reflected in receipts from value added taxes, which were up by 26.8% on the year in March 2022. The low baseline figure for 2021 also contributed to the very high growth rates for this category of taxes. Receipts from domestic VAT grew by 17.0% on the year in March 2022. Revenue in the baseline month of March 2021 was based on the usual VAT rates of 19% (standard) and 7% (reduced), which had come back into effect after the expiry of the temporary cut in VAT rates. However, some purchases are likely to have been brought forward to take advantage of the temporary rate cut before it expired. This would have resulted in lower sales in March 2021 and hence lower VAT revenue, thereby reducing the baseline figure. Receipts from import VAT were up by 41.4%. In 2021, the due date for paying import VAT was pushed back to the 26th day of the month. In both March 2021 and March 2022, this meant that considerable amounts of revenue were recorded in March instead of in February. The amount of revenue affected in March 2022 was significantly larger than in March 2021, however. Cash receipts from value added taxes were up by 34.3% on the year in the first quarter of 2022.

to the top

Taxes accruing to the Federation

In March 2022, revenue from taxes accruing solely to the Federation was up by 9.0% compared with the same month last year. Revenue from the solidarity surcharge recorded a year-on-year rise of 21.2% in March 2022 as a result of higher receipts from the taxes which constitute its tax base. Energy duty receipts posted an impressive gain of 11.4%, but this was entirely due to a low baseline figure in March 2021. Revenue growth was also recorded for insurance tax (+13.8%) and motor vehicle tax (+5.8%). In contrast, yields from tobacco duty and electricity duty fell on the year, by 3.2% and 6.2% respectively. Trends in revenue from other taxes had only a minor impact on overall receipts from federal taxes.

to the top

Taxes accruing to the Länder

Receipts from taxes accruing solely to the Länder were up by 14.3% on the year in March 2022. Taxes recording revenue gains included real property transfer tax (+5.6%), inheritance tax (+35.5%), fire protection tax (+13.8%) and betting and lottery tax (+6.2%). The increase in receipts from betting and lottery tax was mainly due to proceeds from the new online poker tax and virtual slots tax, which have been levied since 1 July 2021. Receipts from beer duty rose by 6.0% on the year.

to the top

Borrowing and guarantees

Borrowing trends for the Federation in March 2022

Tabelle vergrößern

Borrowing trends for the Federation (budget and special funds, excluding loan financing) in March 2022

Tabelle vergrößern

Borrowing trends for the Federation (loan financing) in March 2022

Tabelle vergrößern

Guarantees
  Authorised amountAmount allocated as of
31 March 2022
Amount allocated as of
31 March 2021
in €bn

Export credit guarantees

155.0126.6121.9

Loans to foreign debtors, foreign direct investment, EIB loans

75.035.436.0

Financial cooperation projects

35.030.832.2

Food stockpiling

0.70.00.0

Domestic guarantees

430.0282.1302.9

International financial institutions

110.075.568.6

Treuhandanstalt successor organisations

1.01.01.0

Interest compensation guarantees

15.015.015.0

to the top

Calendar

Publication schedule¹ of the monthly reports
Monthly reportReporting periodPublication date
May 2022 issueApril 202220 May 2022
June 2022 issueMay 202221 June 2022
July 2022 issueJune 202221 July 2022
August 2022 issueJuly 202219 August 2022
September 2022 issueAugust 202222 September 2022
October 2022 issueSeptember 202220 October 2022
November 2022 issueOctober 202222 November 2022
December 2022 issueNovember 202222 December 2022
Key dates on the fiscal and economic policy agenda

18–24 April 2022

Spring meetings of the IMF and World Bank in Washington, D.C., USA

21–23 April 2022

Meeting of G20 finance ministers and central bank governors in Washington, D.C., USA

18–20 May 2022

Meeting of G7 finance ministers and central bank governors in Bonn and Königswinter, Germany

23–24 May 2022

Eurogroup and ECOFIN Council meetings in Brussels, Belgium

16–17 June 2022

Eurogroup and ECOFIN Council meetings in Luxembourg

11–12 July 2022

Eurogroup and ECOFIN Council meetings in Brussels, Belgium