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Federal budget trends up to and including March 2022
Table: Trends in the federal budget
Expenditure (€bn)²
556.6
115.8
Year-on-year change in % (year to date)
-10.6
Revenue (€bn)³
341.0
87.4
Year-on-year change in % (year to date)
28.4
Tax revenue (€bn)
313.5
82.6
Year-on-year change in % (year to date)
30.0
Balance of pass-through funds (€bn)
0.0
0.0
Fiscal balance (€bn)
-215.6
-28.4
Financing/use of surplus:
215.6
28.4
Cash resources (€bn)
-
123.3
Seigniorage (€bn)
0.2
0.0
Movements in reserves⁴ (€bn)
0
0.0
Net borrowing⁵ (€bn)
215.4
-94.9
Any discrepancies in totals are due to rounding.
¹ As per accounts.
² With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting.
³ With the exception of revenue from loans on the credit market, withdrawals from reserves, revenue from cash surpluses and seigniorage. Excluding revenue from internal offsetting.
⁴ Negative values denote accumulation of reserves.
⁵ (-) debt repayment; (+) borrowing
Source: Federal Ministry of Finance
Actual 2021
Actual¹ January–March 2022
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.
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.
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.
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
Trends in federal expenditure by function
General public services
100,399
18.0
21,773
22,755
+4.5
Economic cooperation and development
13,224
2.4
2,160
1,961
-9.2
Defence
46,550
8.4
10,255
10,804
+5.4
Government, central administration
20,576
3.7
5,403
5,682
+5.2
Revenue administration
5,981
1.1
1,340
1,471
+9.7
Education, science, research, cultural affairs
28,985
5.2
4,439
4,201
-5.4
Support for school and university students and training programme participants
4,912
0.9
1,142
1,022
-10.5
Science, research and development outside of higher education institutions
16,259
2.9
2,055
1,754
-14.6
Social security, family affairs and youth, labour market policy
281,133
50.5
85,826
72,925
-15.0
Social security funds including unemployment insurance
147,057
26.4
51,014
42,304
-17.1
of which:
General pension insurance
97,343
17.5
30,930
31,497
+1.8
Health insurance
18,887
3.4
6,841
3,878
-43.3
Unemployment insurance
16,935
3.0
8,924
2,720
-69.5
Labour market policy
42,109
7.6
10,524
9,817
-6.7
of which:
Basic income support for jobseekers under Book II of the Social Code
21,748
3.9
5,612
5,212
-7.1
Government housing and heating allowances under Book II of the Social Code
10,090
1.8
2,731
2,389
-12.5
Family assistance, welfare services, etc.
11,038
2.0
2,708
2,816
+4.0
Social benefits for the consequences of war and political events
2,159
0.4
676
589
-12.9
Other social affairs
67,506
12.1
18,149
14,366
-20.8
Health, environment, sport, recreation
16,959
3.0
4,864
6,313
+29.8
Housing, urban development, regional planning and local community services
2,270
0.4
259
314
+21.6
Housing, home ownership savings premium
1,320
0.2
226
254
+12.4
Food, agriculture and forestry
1,953
0.4
216
183
-15.0
Energy and water management, trade and services
5,705
1.0
1,262
1,871
+48.3
Regional support measures
1,796
0.3
141
175
+24.6
Mining, manufacturing and construction
801
0.1
381
332
-12.9
Transport and communication
29,781
5.4
3,969
3,961
-0.2
Roads
8,451
1.5
807
988
+22.4
Railways and public transport
14,139
2.5
1,381
1,586
+14.9
Financial management
89,432
16.1
6,946
3,265
-53.0
Real property and capital assets, special funds and financial grants
84,467
15.2
3,610
1,154
-68.0
Interest expenditure and borrowing-related expenditure
3,881
0.7
2,911
1,606
-44.8
Total expenditure¹
556,617
100.0
129,552
115,790
-10.6
¹ With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting.
Source: Federal Ministry of Finance
Trends in federal expenditure by economic category
Trends in federal expenditure by economic category
Consumption expenditure
510,835
91.8
114,706
106,963
-6.8
Human resources expenditure
36,498
6.6
9,873
10,272
+4.0
Salary payments
27,237
4.9
7,233
7,504
+3.7
Pensions
9,261
1.7
2,640
2,768
+4.8
Operating expenditure
38,670
6.9
6,575
7,410
+12.7
Maintenance of immovable property
1,083
0.2
215
208
-3.3
Military procurement
17,068
3.1
2,304
2,462
+6.9
Other
20,518
3.7
4,055
4,740
+16.9
Interest expenditure
3,855
0.7
2,909
1,597
-45.1
Ongoing grants and subsidies
427,989
76.9
94,856
87,265
-8.0
to public administrations
117,438
21.1
13,928
11,547
-17.1
to other areas
310,551
55.8
80,928
75,719
-6.4
of which:
Companies
83,683
15.0
17,658
10,395
-41.1
Pensions, benefits, etc.
32,557
5.8
8,420
8,135
-3.4
Social security funds
172,478
31.0
50,615
51,346
+1.4
Other asset transfers
3,824
0.7
493
418
-15.2
Investment expenditure
45,782
8.2
14,846
8,827
-40.5
Financial assistance
39,321
7.1
13,961
7,964
-43.0
Grants and subsidies
33,788
6.1
4,089
4,274
+4.5
Loans, guarantees
2,363
0.4
9,548
3,690
-61.4
Acquisition of holdings; capital contributions
3,170
0.6
323
0
-100.0
Fixed asset investment
6,461
1.2
885
863
-2.5
Construction projects
3,920
0.7
487
400
-17.9
Acquisition of movable assets
2,453
0.4
388
457
+17.8
Acquisition of real property
88
0.0
10
5
-50.0
General reduction/increase in expenditure
0
0.0
0
0
X
Total expenditure¹
556,617
100.0
129,552
115,790
-10.6
¹ With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. Source: Federal Ministry of Finance
Income tax and corporation tax
(incl. final withholding tax on interest and capital gains)
162,587
47.7
35,487
39,981
+12.7
of which:
Wages tax
92,671
27.2
19,312
21,742
+12.6
Assessed income tax
30,746
9.0
7,576
8,888
+17.3
Non-assessed tax on earnings
13,695
4.0
2,072
2,532
+22.2
Final withholding tax on interest and capital gains
4,413
1.3
1,425
1,231
-13.6
Corporation tax
21,062
6.2
5,101
5,589
+9.6
Value added taxes
113,126
33.2
25,364
35,750
+40.9
Trade tax apportionment paid to Federation and Länder
2,082
0.6
136
255
+87.5
Energy duty
37,120
10.9
4,126
4,452
+7.9
Tobacco duty
14,733
4.3
2,585
2,372
-8.2
Solidarity surcharge
11,028
3.2
3,171
2,840
-10.4
Insurance tax
14,980
4.4
6,776
7,175
+5.9
Electricity duty
6,691
2.0
1,692
1,785
+5.5
Motor vehicle tax
9,546
2.8
2,567
2,594
+1.1
Alcohol duty including alcopops duty
2,084
0.6
395
532
+34.7
Coffee duty
1,058
0.3
252
253
+0.4
Aviation tax
566
0.2
68
149
+119.1
Sparkling wine duty and intermediate products duty
363
0.1
79
100
+26.6
Other taxes accruing to the Federation
2
0.0
1
1
+0.0
Deductions
Consolidation assistance for the Länder
800
X
0
0
X
Supplementary grants to Länder
10,071
X
2,322
2,415
+4.0
EU own resources (GNI-based)
28,683
X
10,729
7,162
-33.2
EU own resources (VAT-based)
4,416
X
1,515
1,185
-21.8
Grants to Länder for public transport
9,458
X
2,317
2,598
+12.1
Grants to Länder for motor vehicle tax and HGV toll
8,992
X
2,248
2,248
+0.0
Other revenue
27,472
8.1
4,498
4,761
+5.8
Revenue from economic activity
5,342
1.6
49
62
+26.5
Interest revenue
346
0.1
83
134
+61.4
Loan repayments, holdings, privatisation proceeds
1,304
0.4
324
339
+4.6
Total revenue¹
341,017
100.0
68,066
87,391
+28.4
¹ With the exception of revenue from loans on the credit market, withdrawals from reserves, revenue from cash surpluses and seigniorage. Excluding revenue from internal offsetting. Source: Federal Ministry of Finance
2022 trends in tax revenue (excluding local authority taxes)
2022 trends in tax revenue (excluding local authority taxes)¹
Joint taxes
Wages tax²
17,995
+12.8
56,206
+10.5
230,800
5.7
Assessed income tax
17,495
+13.3
20,915
+17.3
65,050
-10.1
Non-assessed taxes on earnings
2,328
+20.7
5,149
+20.9
23,450
-14.4
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
780
-7.3
2,797
-13.6
8,300
-17.2
Corporation tax
9,379
+23.7
11,178
+9.6
38,950
-7.5
Value added taxes
22,338
+26.8
73,584
+34.3
270,750
8.0
Trade tax apportionment paid to Federation and Länder
5
-53.4
615
+144.3
5,005
1.1
Increased trade tax apportionment
0
X
0
X
0
X
Total joint taxes
70,319
+18.4
170,444
+20.5
642,305
2.6
Taxes accruing to the Federation
Energy duty
2,547
+11.4
4,452
+7.9
38,450
3.6
Tobacco duty
1,086
-3.2
2,372
-8.2
15,420
4.7
Alcohol duty
131
+8.1
531
+34.5
2,130
2.0
Insurance tax
986
+13.8
7,175
+5.9
15,350
2.5
Electricity duty
652
-6.2
1,785
+5.5
6,670
-0.3
Motor vehicle tax
948
+5.8
2,594
+1.1
9,520
-0.3
Aviation tax
48
+63.2
149
+117.9
1,140
101.5
Solidarity surcharge
1,677
+21.2
2,840
-10.4
10,400
-5.7
Other taxes accruing to the Federation
106
-2.3
354
+6.6
1,449
2.2
Total taxes accruing to the Federation
8,179
+9.0
22,252
+2.5
100,529
2.4
Taxes accruing to the Länder
Inheritance tax
1,114
+35.5
2,827
+34.0
9,350
-4.8
Real property transfer tax
1,857
+5.6
5,061
+7.3
18,550
1.2
Betting and lottery tax
214
+6.2
701
+21.3
2,535
8.7
Beer duty
37
+6.0
123
+4.0
618
5.8
Other taxes accruing to the Länder
201
+13.8
263
+11.6
548
2.1
Total taxes accruing to the Länder
3,423
+14.3
8,975
+15.7
31,601
0.0
EU own resources
Customs duties
487
+17.6
1,459
+35.6
5,150
0.5
VAT-based own resources
276
+6.9
1,185
-21.8
4,740
7.3
GNI-based own resources
1,671
-8.8
7,162
-33.2
30,340
5.8
Total EU own resources
2,434
-2.8
9,806
-26.4
41,620
8.9
Federation³
35,917
+20.9
84,851
+28.7
328,364
4.7
Länder³
37,994
+16.5
94,501
+18.1
356,423
0.4
EU
2,434
-2.8
9,806
-26.4
41,620
8.9
Local authorities’ share of income tax and value added tax
6,063
+10.9
13,972
+10.0
53,178
-1.5
Total tax revenue (excluding local authority taxes)
82,408
+17.2
203,130
+18.1
779,585
2.4
¹ Methodology: Total cash income from the various taxes is recorded and allocated to the various government levels as stipulated by law. Tax amounts actually received in the current month by individual government levels may differ from the target amounts for technical reasons. ² After deduction of child benefit refunds by the Federal Central Tax Office. ³ After supplementary grants; any discrepancies with the table on trends in federal revenue are due to the methodology used (see footnote 1). ⁴ Results of the Working Party on Tax Revenue Estimates of November 2021. Source: Federal Ministry of Finance
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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in March 2022
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in March 2022
in €m
Total
1,364,071
43,410
-33,108
1,374,374
10,303
1,700
broken down by purpose
Federal budget
1,322,448
39,644
-29,406
1,332,685
10,238
1,670
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))
22,734
1,320
-1,320
22,734
-
4
Investment and Redemption Fund
16,111
896
-896
16,111
-
11
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
2,779
1,551
-1,486
2,844
65
15
broken down by debt type
Conventional federal securities
1,264,516
41,135
-33,108
1,272,543
8,027
1,339
30-year federal bonds
282,545
7,988
-
290,533
7,988
1,414
10-year federal bonds
584,514
6,234
-
590,747
6,234
-162
Federal notes
165,863
3,371
-
169,234
3,371
-32
Federal Treasury notes
90,170
5,417
-13,985
81,602
-8,568
41
Treasury discount papers issued by the Federation
141,424
18,125
-19,123
140,427
-997
77
Inflation-linked federal securities
66,942
834
-
67,776
834
354
Green federal securities
22,520
1,441
-
23,961
1,441
25
Securitised loans
5,620
-
-
5,620
-
-18
Other loans and ordinary debts
4,474
-
-
4,474
-
-
Additional information
Liabilities from the indexing of inflation-linked federal securities
7,507
7,809
303
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)
4,390
4,411
21
-
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 March 2022
Borrowing trends for the Federation (loan financing) in March 2022
in €m
Total
92,906
500
-1,006
92,400
-506
1
broken down by purpose
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)
58,500
500
-
59,000
500
-5
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)
34,406
-
-1,006
33,400
-1,006
6
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.