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Federal budget trends up to and including April 2022
Table: Trends in the federal budget
Expenditure (€bn)²
556.6
155.3
Year-on-year change in % (year to date)
-5.0
Revenue (€bn)³
341.0
114.6
Year-on-year change in % (year to date)
23.4
Tax revenue (€bn)
313.5
107.2
Year-on-year change in % (year to date)
24.7
Balance of pass-through funds (€bn)
0.0
0.0
Fiscal balance (€bn)
-215.6
-40.7
Financing/use of surplus:
215.6
40.7
Cash resources (€bn)
-
138.8
Seigniorage (€bn)
0.2
0.0
Movements in reserves⁴ (€bn)
0
0.0
Net borrowing⁵ (€bn)
215.4
-98.2
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 to April 2022
Until the 2022 budget has been 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 April 2022 totalled approximately €114,6bn, up by 23.4% (about €21.7bn) on the year. Tax receipts (taking into account transfers of own resources to the EU) increased by 24.7% (roughly €21.3bn) on the year. The yield from value added taxes was up by 35.0% (approximately €11.9bn) on the year. Revenue from income tax and corporation tax rose by 11.9% (about €5.4bn). Payments to the EU (GNI-based own resources and VAT-based own resources) were down by about €3.5bn on the year, which also contributed to the increase in tax revenue.
The category of “other revenue” recorded a gain of 6.7% (about €0.5bn) on the year in the January–April period.
Federal expenditure in the first four months of 2022 totalled approximately €155.3bn, down by 5.0% (about €8.2bn) compared with the same period last year. A breakdown by economic category shows that consumption spending was at almost the same level as in the same period last year, dropping by just 0.4% (about €0.6bn). However, opposing trends could also be observed. Firstly, ongoing subsidies to social security funds were up by €5.3bn on the year, which increased spending levels. This includes higher federal payments to the health fund and the long-term care insurance compensation fund to cover pandemic-related costs of around €7.4bn, and the elimination of €3.0bn in grants for a programme to future-proof hospitals. Secondly, spending on subsidies for the procurement of Covid-19 vaccines rose by around €2.1bn on the year in the January–April 2022 period. In addition, interest expenditure was up by 125.5% (around €2.9bn) on the year; this was largely the result of higher grants to the special fund for final payments on inflation-indexed federal securities. The reduction in spending compared with the same period last year was mainly due to lower subsidies to companies, which fell by 38.3% (around €8.9bn). Assistance to businesses affected by the fallout from the coronavirus pandemic amounted to roughly €5.4bn in the first four months of 2022, compared with approximately €14.3bn in the same period last year. Moreover, grants to public administrations fell by 16.4% (about €2.9bn) 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.
Investment spending totalled about €10.6bn in the first four months of 2022, down by 41.7% (roughly €7.6bn) on the year. This was mainly because the liquidity assistance provided to the Federal Employment Agency in the January–April period was around €7.5bn lower than in the same period last year. 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 €40.7bn for the January–April 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
28,659
29,482
+2.9
Economic cooperation and development
13,224
2.4
2,697
2,364
-12.3
Defence
46,550
8.4
13,773
14,194
+3.1
Government, central administration
20,576
3.7
6,846
7,240
+5.8
Revenue administration
5,981
1.1
1,785
1,953
+9.4
Education, science, research, cultural affairs
28,985
5.2
6,145
6,015
-2.1
Support for school and university students and training programme participants
4,912
0.9
1,411
1,276
-9.5
Science, research and development outside of higher education institutions
16,259
2.9
3,021
2,837
-6.1
Social security, family affairs and youth, labour market policy
281,133
50.5
108,282
95,973
-11.4
Social security funds including unemployment insurance
147,057
26.4
63,090
53,157
-15.7
of which:
General pension insurance
97,343
17.5
39,161
39,792
+1.6
Health insurance
18,887
3.4
8,148
5,173
-36.5
Unemployment insurance
16,935
3.0
10,315
2,845
-72.4
Labour market policy
42,109
7.6
14,069
13,025
-7.4
of which:
Basic income support for jobseekers under Book II of the Social Code
21,748
3.9
7,495
6,864
-8.4
Government housing and heating allowances under Book II of the Social Code
10,090
1.8
3,590
3,148
-12.3
Family assistance, welfare services, etc.
11,038
2.0
3,650
3,764
+3.1
Social benefits for the consequences of war and political events
2,159
0.4
905
841
-7.0
Other social affairs
67,506
12.1
22,349
21,314
-4.6
Health, environment, sport, recreation
16,959
3.0
5,807
8,119
+39.8
Housing, urban development, regional planning and local community services
2,270
0.4
423
350
-17.3
Housing, home ownership savings premium
1,320
0.2
327
269
-17.7
Food, agriculture and forestry
1,953
0.4
348
238
-31.6
Energy and water management, trade and services
5,705
1.0
1,509
2,295
+52.1
Regional support measures
1,796
0.3
210
313
+49.2
Mining, manufacturing and construction
801
0.1
432
359
-16.9
Transport and communication
29,781
5.4
5,482
5,424
-1.1
Roads
8,451
1.5
1,332
1,471
+10.4
Railways and public transport
14,139
2.5
1,790
1,987
+11.0
Financial management
89,432
16.1
6,878
7,430
+8.0
Real property and capital assets, special funds and financial grants
84,467
15.2
4,032
1,579
-60.8
Interest expenditure and borrowing-related expenditure
3,881
0.7
2,340
5,282
+125.7
Total expenditure¹
556,617
100.0
163,533
155,326
-5.0
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
145,310
144,701
-0.4
Human resources expenditure
36,498
6.6
12,781
13,266
+3.8
Salary payments
27,237
4.9
9,423
9,761
+3.6
Pensions
9,261
1.7
3,358
3,505
+4.4
Operating expenditure
38,670
6.9
9,428
10,233
+8.5
Maintenance of immovable property
1,083
0.2
301
294
-2.3
Military procurement
17,068
3.1
3,567
3,525
-1.2
Other
20,518
3.7
5,560
6,415
+15.4
Interest expenditure
3,855
0.7
2,339
5,274
+125.5
Ongoing grants and subsidies
427,989
76.9
120,090
115,309
-4.0
to public administrations
117,438
21.1
17,560
14,683
-16.4
to other areas
310,551
55.8
102,529
100,626
-1.9
of which:
Companies
83,683
15.0
23,388
14,439
-38.3
Pensions, benefits, etc.
32,557
5.8
11,227
10,707
-4.6
Social security funds
172,478
31.0
62,704
68,032
+8.5
Other asset transfers
3,824
0.7
672
619
-7.9
Investment expenditure
45,782
8.2
18,224
10,625
-41.7
Financial assistance
39,321
7.1
16,907
9,317
-44.9
Grants and subsidies
33,788
6.1
5,532
5,471
-1.1
Loans, guarantees
2,363
0.4
11,051
3,847
-65.2
Acquisition of holdings; capital contributions
3,170
0.6
323
0
-100.0
Fixed asset investment
6,461
1.2
1,317
1,307
-0.8
Construction projects
3,920
0.7
752
702
-6.6
Acquisition of movable assets
2,453
0.4
550
596
+8.4
Acquisition of real property
88
0.0
15
9
-40.0
General reduction/increase in expenditure
0
0.0
0
0
X
Total expenditure¹
556,617
100.0
163,533
155,326
-5.0
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
45,105
50,495
+11.9
of which:
Wages tax
92,671
27.2
27,124
30,326
+11.8
Assessed income tax
30,746
9.0
7,710
9,122
+18.3
Non-assessed tax on earnings
13,695
4.0
2,751
3,317
+20.6
Final withholding tax on interest and capital gains
4,413
1.3
1,793
1,529
-14.7
Corporation tax
21,062
6.2
5,726
6,200
+8.3
Value added taxes
113,126
33.2
33,854
45,709
+35.0
Trade tax apportionment paid to Federation and Länder
2,082
0.6
432
622
+44.0
Energy duty
37,120
10.9
6,550
7,229
+10.4
Tobacco duty
14,733
4.3
4,051
3,574
-11.8
Solidarity surcharge
11,028
3.2
3,663
3,471
-5.2
Insurance tax
14,980
4.4
7,791
8,117
+4.2
Electricity duty
6,691
2.0
2,270
2,376
+4.7
Motor vehicle tax
9,546
2.8
3,386
3,397
+0.3
Alcohol duty including alcopops duty
2,084
0.6
530
678
+27.9
Coffee duty
1,058
0.3
361
374
+3.6
Aviation tax
566
0.2
95
219
+130.5
Sparkling wine duty and intermediate products duty
363
0.1
98
122
+24.5
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
2,302
2,415
+4.9
EU own resources (GNI-based)
28,683
X
12,822
9,549
-25.5
EU own resources (VAT-based)
4,416
X
1,811
1,580
-12.8
Grants to Länder for public transport
9,458
X
3,089
3,420
+10.7
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
6,983
7,448
+6.7
Revenue from economic activity
5,342
1.6
1,072
1,204
+12.3
Interest revenue
346
0.1
101
164
+62.4
Loan repayments, holdings, privatisation proceeds
1,304
0.4
350
365
+4.3
Total revenue¹
341,017
100.0
92,898
114,619
+23.4
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
20,221
+9.7
76,427
+10.3
236,100
+8.1
Assessed income tax
555
+74.7
21,470
+18.3
70,100
-3.1
Non-assessed taxes on earnings
1,579
+20.4
6,728
+20.7
32,250
+17.7
Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)
679
-19.0
3,476
-14.7
8,600
-14.3
Corporation tax
1,223
-2.2
12,401
+8.3
41,750
-0.9
Value added taxes
20,774
+13.4
94,358
+29.1
283,250
+12.9
Trade tax apportionment paid to Federation and Länder
1,229
+23.2
1,844
+47.6
5,333
+7.7
Increased trade tax apportionment
0
X
0
X
0
X
Total joint taxes
46,261
+11.6
216,704
+18.5
677,383
+8.2
Taxes accruing to the Federation
Energy duty
2,777
+14.6
7,229
+10.4
37,500
+1.0
Tobacco duty
1,202
-18.0
3,574
-11.8
15,220
+3.3
Alcohol duty
146
+9.0
678
+28.1
2,130
+2.0
Insurance tax
942
-7.1
8,117
+4.2
15,650
+4.5
Electricity duty
591
+2.2
2,376
+4.6
6,850
+2.4
Motor vehicle tax
802
-2.1
3,397
+0.3
9,560
+0.1
Aviation tax
70
+166.2
219
+131.3
1,115
+97.1
Solidarity surcharge
631
+28.2
3,471
-5.2
11,150
+1.1
Other taxes accruing to the Federation
144
+11.9
497
+8.1
1,451
+2.3
Total taxes accruing to the Federation
7,306
+3.1
29,558
+2.6
100,626
+2.5
Taxes accruing to the Länder
Inheritance tax
747
-3.2
3,574
+24.1
10,400
+5.9
Real property transfer tax
1,368
-2.5
6,429
+5.1
18,800
+2.5
Betting and lottery tax
230
+26.5
932
+22.6
2,655
+13.8
Beer duty
48
-0.2
171
+2.8
600
+2.7
Other taxes accruing to the Länder
36
+1.5
299
+10.3
580
+8.1
Total taxes accruing to the Länder
2,430
-0.5
11,405
+11.8
33,035
+4.5
EU own resources
Customs duties
559
+16.9
2,018
+29.8
5,900
+15.2
VAT-based own resources
395
+33.6
1,580
-12.8
4,740
+7.3
GNI-based own resources
2,387
+14.0
9,549
-25.5
29,600
+3.2
Total EU own resources
3,341
+16.5
13,147
-18.8
41,630
+8.9
Federation³
22,834
+10.2
107,685
+24.3
345,246
+10.1
Länder³
26,568
+9.4
121,068
+16.1
375,053
+5.6
EU
3,341
+16.5
13,147
-18.8
41,630
+8.9
Local authorities’ share of income tax and value added tax
3,813
+6.3
17,785
+9.2
55,016
+1.9
Total tax revenue (excluding local authority taxes)
56,555
+9.9
259,685
+16.2
816,944
+7.4
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 May 2022.
Source: Federal Ministry of Finance
Total tax revenue (excluding local authority taxes) was up by 9.9% on the year in April 2022. This is primarily a result of the 11.6% year-on-year rise in revenue from joint taxes. Most types of taxes, such as value added taxes and wages tax, recorded tangible revenue growth compared with their 2021 baselines, which were significantly impacted by the economic fallout from the Covid-19 pandemic. Receipts from federal taxes increased by 3.1% on the year in April 2022, while receipts from taxes accruing to the Länder fell by 0.5%. The war in Ukraine has not yet had a noticeable effect on tax revenues in Germany.
The ongoing strong upwards trend in tax revenues, which is also apparent when compared with the trend in the tax bases, is reflected in the Working Party on Tax Revenue Estimates’ most recent tax revenues forecast of 10–12 May 2022. At the same time, the outlook for future revenue trends is currently very unpredictable, given the war in Ukraine and uncertainties about the further course of the pandemic, especially in relation to possible supply chain disruptions caused by the situation in China. The Working Party’s forecasts are published on the Finance Ministry’s website (in German). A detailed article on the forecasts will appear in the next edition of the German version of the monthly report.
Transfers of own resources to the EU, excluding customs duties, were up by approximately 16.5% on the year in April 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 24.0% lower in cumulative terms than in the same period last year. As a result, requisitions in the rest of the year can also be expected to be somewhat higher than in the equivalent period of 2021.
Overall, the first four months of 2022 were marked by a relatively strong increase in tax revenues, which rose by 16.2% on the year. This was partly due to the fact that receipts in the same period of 2021 were impacted by the economic effects of the Covid-19 pandemic and by the statutory and administrative tax measures that were taken in response. In January–April 2022, receipts from joint taxes rose by 18.5% on the year, revenue from federal taxes increased by 2.6% and the yield from taxes accruing to the Länder was up by 11.8%.
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 9.4% on the year in April 2022. This increase was mainly due to growth in revenue from joint taxes. The Federation’s take from joint taxes grew by 13.2%, which was higher than the 11.6% increase in overall revenue from joint taxes. This was due to the fact that, once again, there was a moderate change in the distribution of VAT revenue in the Federation’s favour in comparison with the same period last year. In addition, revenue from taxes accruing solely to the Federation was up by 3.1% 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 April 2022, by 9.4%. Total Länder revenue from joint taxes also rose substantially, by 10.9%. Mirroring the higher payments made by the Federation, the Länder saw an increase in receipts from supplementary federal grants (+12.6%) and from federal subsidies for public transport (+6.4%). In contrast, the yield from taxes that accrue exclusively to the Länder posted a slight drop of 0.5%. Local authorities’ take from their share of joint taxes was 6.3% higher than in the same period last year.
Gross revenue from wages tax was up by 7.5% in year-on-year terms in April 2022. This upwards trend primarily reflects the improvement in labour market conditions compared with April 2021: there has been a significant decline in short-time work, and employment has risen further (see the article on domestic economic trends from a fiscal policy perspective in the current German edition of the monthly report). Child benefit payments – which are financed from wages tax receipts – fell slightly, by 2.7% on the year. Overall, cash receipts from wages tax posted a year-on-year gain of 9.7% in April 2022. In cumulative terms, cash receipts from wages tax were up by 10.3% on the year in the first four months of 2022.
In April 2022, gross revenue from corporation tax fell slightly on the year, by 1.5%. However, year-on-year revenue fluctuations of this kind are common in months such as April and should not be interpreted as indications of the future course of revenue trends. 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. Cash receipts from corporation tax were down by 2.2% on the year in April 2022. In cumulative terms, cash receipts from corporation tax were up by 8.3% on the year in the first four months of 2022.
Like corporation tax receipts, revenue from assessed income tax in April 2022 was also influenced by assessment activities. Here too, significant year-on-year fluctuations can occur. Gross receipts from assessed income tax rose by 2.2% on the year in April. Employee refunds declined by 10.6% 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 74.7% on the year in April 2022. In cumulative terms, cash receipts from assessed income tax increased by 18.3% on the year in the first four months of 2022.
Gross receipts from non-assessed taxes on earnings recorded a 17.7% year-on-year rise in April 2022. Refunds by the Federal Central Tax Office, which are financed from gross revenue, totalled about €68m (down by 22.0% on the year). Overall, cash receipts from non-assessed taxes on earnings were up by 20.4% in April 2022 compared with the same month last year. Cumulatively, cash receipts from non-assessed taxes on earnings rose by 20.7% on the year in the first four months of 2022.
Final withholding tax on interest and capital gains
In April 2022, revenue from final withholding tax on interest and capital gains was 19.0% lower than in the same month last year. Taken cumulatively, cash receipts from final withholding tax on interest and capital gains were down by 14.7% on the year in the first four months of 2022.
Revenue from value added taxes increased by 13.4% on the year in April 2022. Receipts from domestic VAT grew by 8.9% on the year in April 2022. Cash receipts originated primarily from transactions that occurred in February. The level of domestic economic activity was much lower in February 2021 than in February 2022 as a result of the pandemic and the lockdown, which explains the revenue growth this year. In addition, consumption levels were lower in early 2021 due to purchases having been brought forward because of the temporary VAT reduction in the second half of 2020; this may also have reduced the 2021 baseline somewhat. Receipts from import VAT grew by 25.0% on the year in April 2022. This is related to a significantly higher level of imports of goods compared with the same period last year, which is partly due to the very sharp increase in import prices. Cumulatively, cash receipts from value added taxes rose by 29.1% on the year in the first four months of 2022; this was in part the result of significantly lower baselines in 2021 because of the Covid-19 pandemic and the tax measures that were taken in response.
In April 2022, revenue from taxes accruing solely to the Federation was up by 3.1% compared with the same month last year. Revenue from the solidarity surcharge recorded a year-on-year rise of 28.2% in April as a result of higher receipts from the taxes which constitute its tax base. The sharp increase in receipts from energy duty, which were up by 14.6%, was largely the result of a low baseline in 2021. Revenue from this tax is still lower than it was in the pre-pandemic period. The yield from aviation tax posted extremely high growth of 166.2%, which is also due to a very low baseline. Despite the upwards trend, receipts from this tax are still far short of pre-pandemic levels. In contrast, yields from insurance tax and tobacco duty fell on the year, by 7.1% and 18.0% 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 down in April 2022, by 0.5% on the year. Revenue from real property transfer tax fell by 2.5% on the year, while the yield from inheritance tax was down by 3.2%. The increase in receipts from betting and lottery tax, which were up by 26.5%, was mainly due to proceeds from the new online poker tax and virtual slots tax, which have been levied since 1 July 2021. Revenue from fire protection tax was up by 1.5%, while receipts from beer duty fell slightly on the year, by 0.2%.
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in April 2022
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in April 2022
in €m
Total
1,374,374
38,867
-41,500
1,371,741
-2,633
-3,613
broken down by purpose
Federal budget
1,332,685
38,966
-41,500
1,330,152
-2,534
-3,613
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))
22,734
-10
-
22,724
-10
-
Investment and Redemption Fund
16,111
10
-
16,121
10
-
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)
2,844
-99
-
2,745
-99
-
broken down by debt type
Conventional federal securities
1,272,543
38,127
-41,450
1,269,220
-3,324
591
30-year federal bonds
290,533
2,305
-
292,837
2,305
931
10-year federal bonds
590,747
7,148
-
597,896
7,148
-309
Federal notes
169,234
3,890
-20,316
152,808
-16,426
-95
Federal Treasury notes
81,602
5,615
-
87,217
5,615
-13
Treasury discount papers issued by the Federation
140,427
19,169
-21,134
138,462
-1,965
76
Inflation-linked federal securities
67,776
740
-
68,517
740
-4,177
Green federal securities
23,961
-
-
23,961
-
-
Securitised loans
5,620
-
-50
5,570
-50
-27
Other loans and ordinary debts
4,474
-
-
4,474
-
-
Additional information
Liabilities from the indexing of inflation-linked federal securities
7,809
8,601
792
-
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)
4,411
8,768
4,357
-
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 April 2022
Borrowing trends for the Federation (loan financing) in April 2022
in €m
Debt level
Borrowing
(increase)
Debt repayment
(decrease)
Debt level
Change in debt level
(balance)
Interest
31 March 2022
April
April
30 April 2022
April
April
Total
92,400
500
-
92,900
500
-16
broken down by purpose
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)
59,000
500
-
59,500
500
-16
Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)
33,400
-
-
33,400
-
-
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.