Navigation

zur Suche

You are here:

21 March 2024

Overview of federal budgetary and financial data up to and including February 2024

Translated extracts from the Federal Ministry of Finance’s March 2024 monthly report

Federal budget trends up to and including February 2024

Table: Trends in the federal budget

Expenditure (€bn)²

457.1

476.8

80.2

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

 

 

-3.5

Revenue (€bn)³

392.2

427.5

60.3

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

 

 

+15.0

Tax revenue (€bn)

356.1

377.6

53.6

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

 

 

+9.4

Balance of pass-through funds (€bn)

0.0

0.0

0.0

Fiscal balance (€bn)

-64.9

-49.4

-19.9

Financing/use of surplus:

64.9

49.4

19.9

Cash resources (€bn)

-

-

77.8

Seigniorage (€bn)

0.2

0.2

0.0

Movements in reserves⁴ (€bn)

37.5

10.2

0.0

Net borrowing⁵ (€bn)

27.2

39.0

-57.9

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 2023

2024 target

Actual
January–February 2024¹

to the top

Revenue

Federal revenue (excluding seigniorage, withdrawals from reserves and revenue from loans) totalled €60.3bn in the first two months of 2024, up by 15.0% (€7.9bn) on the year. Tax revenues were up by 9.4% (€4.6bn) on the year. For further information about tax revenues, please refer to the article “Tax revenues in February 2024” [in German only] in the current issue of the monthly report.

The category of “other income” totalled €6.7bn in the first two months of 2024, a year-on-year gain of 94.8% (€3.3bn). Receipts from the distance-based commercial vehicle toll increased by €0.8bn on the year, mainly due to Germany’s recent addition of a CO2 component to the toll. In addition, since the beginning of the year, revenue from allocations of spectrum for mobile communications (which totalled €0.4bn in the first two months of 2024) have flowed into the federal budget rather than into the special fund for digital infrastructure as in previous years.

to the top

Expenditure

Federal expenditure in the first two months of 2024 totalled €80.2bn, down by 3.5% (€2.9bn) on the year. A breakdown by economic category shows that the decrease in expenditure was caused by lower investment spending, which was down by 62.7% (€6.9bn) on the year. The enormous decline in investment spending was mainly due to a special factor in 2023: specifically, a €6.3bn loan that was granted to the IMF’s Resilience and Sustainability Trust in January 2023 was recorded as an investment item, as required under budget law. No such loan was made in 2024. After adjusting for this effect, investment spending was down by €0.6bn (13.2%) on the year. This outcome can be attributed mainly to the fact that no liquidity assistance has been provided to the Federal Employment Agency so far in 2024. Fixed asset investment was down by 2.9% on the year.

Consumption spending rose by 5.6% (€4.0bn) on the year. Interest expenditure was up by €0.6bn on the year, and ongoing grants and subsidies climbed by €3.3bn on the year. Expenditure to enhance security, defence and stability in partner countries totalled €1.2bn in the first two months of 2024, an increase of €1.0bn compared with the same period last year. Federal subsidies to the general pension insurance system rose by €1.1bn on the year, and spending on citizen’s benefit grew by €0.7bn on the year. Furthermore, repayments of pandemic-related immediate assistance loans for small businesses and self-employed individuals, which last year were accounted for in a manner that lowered spending figures for ongoing grants and subsidies by €1.5bn in the first two months of 2023, are now recorded in the accounts as revenue; no such revenue was posted in the first two months of 2024. In contrast, federal payments to the health fund to cover pandemic-related costs declined by €0.6bn on the year in the first two months of 2024. No money was budgeted this year for federal lump-sum contributions to the long-term care insurance system; in the first two months of 2024, this led to a €0.9bn year-on-year reduction in federal spending when compared with the same period last year.

to the top

Fiscal balance

The federal budget recorded a deficit of €19.9bn for the January–February 2024 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 this 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 at the start of the year, and even more so in 2024 due to the interim budget that was in effect during the first several weeks of the year.

Trends in federal expenditure by function

General public services

111,314

24.4

113,938

23.9

16,589

17,749

+7.0

Economic cooperation and development

11,866

2.6

11,054

2.3

1,798

1,717

-4.5

Defence

55,521

12.1

58,346

12.2

8,245

9,145

+10.9

Government, central administration

22,243

4.9

23,411

4.9

3,647

3,975

+9.0

Revenue administration

6,961

1.5

6,933

1.5

963

1,041

+8.1

Education, science, research, cultural affairs

29,479

6.4

30,680

6.4

2,994

2,952

-1.4

Support for school and university students and training programme participants

5,205

1.1

4,338

0.9

839

777

-7.4

Science, research and development outside of higher education institutions

16,973

3.7

17,595

3.7

1,140

1,192

+4.5

Social security, family affairs and youth, labour market policy

215,222

47.1

218,310

45.8

44,322

45,732

+3.2

Social security funds including unemployment insurance

136,028

29.8

137,841

28.9

31,193

31,182

-0.0

of which:

 

 

 

 

 

 

 

General pension insurance

103,053

22.5

107,556

22.6

24,298

25,562

+5.2

Health insurance

18,968

4.1

16,026

3.4

2,954

2,675

-9.5

Labour market policy

48,212

10.5

47,323

9.9

7,747

8,624

+11.3

of which:

 

 

 

 

 

 

 

Citizen’s benefit under Book II of the Social Code

25,808

5.6

26,500

5.6

4,512

5,224

+15.8

Government housing and heating allowances under Book II of the Social Code

11,576

2.5

11,100

2.3

1,843

2,053

+11.4

Family assistance, welfare services, etc.

13,396

2.9

14,571

3.1

2,091

2,279

+9.0

Social benefits under Book XII of the Social Code and the Asylum Seekers Benefits Act (Asylbewerberleistungsgesetz)

9,873

2.2

10,927

2.3

2,117

2,396

+13.2

Other social affairs

2,240

0.5

1,833

0.4

175

41

-76.5

Health, environment, sport, recreation

6,561

1.4

5,486

1.2

950

623

-34.4

Housing, urban development, regional planning and local community services

3,549

0.8

4,041

0.8

202

238

+17.9

Housing, home ownership savings premium

2,271

0.5

2,745

0.6

189

214

+13.3

Food, agriculture and forestry

1,723

0.4

1,756

0.4

79

66

-16.7

Energy and water management, trade and services

14,573

3.2

13,652

2.9

6,950

547

-92.1

Regional support measures

1,799

0.4

4,447

0.9

84

103

+22.5

Monetary and insurance system

7,032

1.5

165

0.0

6,504

-80

-101.2

Other trade and services

1,755

0.4

4,155

0.9

72

72

-0.8

Transport and communication

28,478

6.2

35,556

7.5

2,572

3,015

+17.2

Roads

9,949

2.2

9,524

2.0

653

855

+30.9

Railways and public transport

10,795

2.4

17,884

3.8

898

1,149

+28.0

Financial management

46,228

10.1

53,390

11.2

8,459

9,313

+10.1

Real property and capital assets, special funds and financial grants

7,323

1.6

21,558

4.5

719

1,005

+39.7

Interest expenditure and borrowing-related expenditure

37,687

8.2

37,445

7.9

7,405

8,062

+8.9

Total expenditure¹

457,129

100.0

476,808

100.0

83,118

80,236

-3.5

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

 


 

Actual 2023

2024 target

Actual

Year-on-year
change
(year to date)

January-
February
2023

January-
February 
2024

in €m

share
in %

in €m

share
in %

in €m

in %

Trends in federal expenditure by economic category

Consumption expenditure

402,167

88.0

416,854

87.4

72,079

76,121

+5.6

Human resources expenditure

40,119

8.8

44,971

9.4

7,404

7,896

+6.6

Salary payments

29,823

6.5

34,504

7.2

5,383

5,714

+6.1

Pensions

10,296

2.3

10,468

2.2

2,022

2,182

+7.9

Operating expenditure

43,654

9.5

45,038

9.4

5,246

4,877

 -7.0

Maintenance of immovable property

1,213

0.3

1,214

0.3

128

146

+14.1

Military procurement

17,035

3.7

15,247

3.2

1,962

1,628

 -17.0

Other

25,407

5.6

28,577

6.0

3,155

3,102

 -1.7

Interest expenditure

37,648

8.2

37,409

7.8

7,404

8,051

+8.7

Ongoing grants and subsidies

278,953

61.0

287,675

60.3

51,514

54,770

+6.3

to public administrations

40,672

8.9

40,541

8.5

6,115

6,966

+13.9

to other areas

238,281

52.1

247,134

51.8

45,399

47,804

+5.3

of which:

 

 

 

 

 

 

 

Companies

33,130

7.2

38,644

8.1

2,799

4,347

+55.3

Pensions, benefits, etc.

37,982

8.3

41,579

8.7

6,526

7,373

+13.0

Social security funds

144,498

31.6

143,925

30.2

32,741

32,021

 -2.2

Other asset transfers

1,792

0.4

1,761

0.4

512

527

+2.9

Investment expenditure

54,961

12.0

70,522

14.8

11,039

4,115

 -62.7

Financial assistance

48,260

10.6

64,003

13.4

10,618

3,707

 -65.1

Grants and subsidies

37,119

8.1

43,828

9.2

3,248

3,530

+8.7

Loans, guarantees

9,741

2.1

14,551

3.1

7,371

127

 -98.3

Acquisition of holdings; capital contributions

1,400

0.3

5,624

1.2

0

50

X

Fixed asset investment

6,702

1.5

6,519

1.4

420

408

 -2.9

Construction projects

4,135

0.9

3,971

0.8

161

238

+47.8

Acquisition of movable assets

2,428

0.5

2,478

0.5

244

160

 -34.4

Acquisition of real property

139

0.0

70

0.0

15

9

 -40.0

General reduction/increase in expenditure

0

0.0

-10,568

-2.2

0

0

X

Total expenditure¹

457,129

100.0

476,808

100.0

83,118

80,236

 -3.5

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

Actual 2023

2024 target

Actual

Year-on-year
change
(year to date)

January-
February
2023

January-
February
2024

in €m

share
in %

in €m

share
in %

in €m

in %

Trends in federal revenue

Taxes¹

356,082

90.8

377,613

88.3

49,013

53,639

+9.4

Federal share of joint taxes:

317,036

80.8

339,188

79.4

43,499

45,907

+5.5

Income tax and corporation tax
(incl. final withholding tax on interest and capital gains)

175,898

44.8

184,755

43.2

17,811

19,176

+7.7

of which:

 

 

 

 

 

 

 

Wages tax

100,382

25.6

109,501

25.6

13,797

13,983

+1.3

Assessed income tax

31,190

8.0

31,184

7.3

1,068

1,151

+7.8

Non-assessed tax on earnings

18,221

4.6

17,200

4.0

1,807

1,466

 -18.9

Final withholding tax on interest and capital gains

3,679

0.9

3,520

0.8

564

1,862

+230.1

Corporation tax

22,426

5.7

23,350

5.5

575

714

+24.2

Value added taxes

138,452

35.3

151,696

35.5

25,479

26,537

+4.2

Trade tax apportionment paid to Federation and Länder

2,685

0.7

2,737

0.6

208

195

 -6.3

Energy duty

36,658

9.3

36,300

8.5

1,634

1,771

+8.4

Tobacco duty

14,672

3.7

16,080

3.8

1,351

1,832

+35.6

Solidarity surcharge

12,239

3.1

12,250

2.9

1,209

1,347

+11.4

Insurance tax

16,851

4.3

17,550

4.1

6,691

7,204

+7.7

Electricity duty

6,832

1.7

5,035

1.2

1,143

1,003

 -12.2

Motor vehicle tax

9,514

2.4

9,565

2.2

1,611

1,700

+5.5

Alcohol duty including alcopops duty

2,160

0.6

2,192

0.5

384

368

 -4.2

Coffee duty

1,030

0.3

1,040

0.2

170

160

 -5.9

Aviation tax

1,486

0.4

2,055

0.5

185

215

+16.2

Sparkling wine duty and intermediate products duty

385

0.1

395

0.1

91

93

+2.2

Other taxes accruing to the Federation

2

0.0

1,002

0.2

1

1

0.0

Deductions

 

 

 

 

 

 

 

Consolidation assistance for the Länder

800

X

800

X

0

0

X

Supplementary grants to Länder

10,883

X

11,152

X

0

0

X

EU own resources (GNI-based)

22,981

X

23,850

X

3,702

2,357

 -36.3

EU own resources (VAT-based)

5,306

X

5,600

X

935

988

+5.7

EU own resources (plastics)

1,423

X

1,420

X

253

249

 -1.6

Grants to Länder for public transport

12,398

X

13,225

X

1,816

2,121

+16.8

Grants to Länder for motor vehicle tax and HGV toll

8,992

X

8,992

X

2,248

2,248

0.0

Other revenue

36,147

9.2

49,840

11.7

3,433

6,688

+94.8

Revenue from economic activity

5,177

1.3

3,916

0.9

58

172

+196.6

Interest revenue

2,195

0.6

1,932

0.5

195

391

+100.5

Loan repayments, holdings, privatisation proceeds

1,561

0.4

1,188

0.3

66

1,818

X

Total revenue²

392,229

100.0

427,453

100.0

52,446

60,326

+15.0

¹ Any discrepancies in relation to the table “2023 trends in tax revenue (excluding local authority taxes)” are due to the methodology used.
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

Actual 2023

2024 target

Actual

Year-on-year
change
(year to date)

January-
February
2023

January-
February
2024

in €m

share
 in %

in €m

share
in %

in €m

in %

to the top

Tax revenue in February 2024

2024 trends in tax revenue (excluding local authority taxes)¹

Joint taxes

 

 

 

 

 

 

Wages tax²

18,333

+3.5

39,047

+1.4

257,650

+9.1

Assessed income tax

717

+37.3

2,713

+7.7

74,950

+2.1

Non-assessed taxes on earnings

759

 -64.7

2,928

 -20.9

34,400

 -5.6

Final withholding tax on interest and capital gains
(including the former withholding tax on interest income)

1,724

+261.6

4,231

+230.3

8,000

 -4.3

Corporation tax

140

 -51.8

1,428

+24.3

46,700

+4.1

Value added taxes

28,427

+7.2

53,914

+5.0

311,350

+6.8

Total joint taxes

50,100

+5.1

104,262

+5.9

733,050

+6.1

Trade tax apportionments paid to Federation and Länder

 

 

 

 

 

 

Trade tax apportionments

242

+1,195.1

477

+30.2

6,607

+4.1

Increased trade tax apportionments

0

X

0

+739.4

0

X

Total trade tax apportionments

242

+1,196.0

477

+30.2

6,607

+4.1

Taxes accruing to the Federation

 

 

 

 

 

 

Energy duty

1,432

+6.0

1,771

+8.4

36,300

 -1.0

Tobacco duty

1,340

+50.6

1,832

+35.6

16,080

+9.6

Alcohol duty

206

 -5.8

368

 -4.2

2,190

+1.4

Insurance tax

6,308

+7.6

7,204

+7.7

17,550

+4.2

Electricity duty

445

 -16.4

1,003

 -12.3

8,285

+21.3

Motor vehicle tax

788

+6.7

1,700

+5.6

9,565

+0.5

Aviation tax

97

+7.1

215

+16.5

1,680

+13.1

Solidarity surcharge

543

+2.1

1,347

+11.4

12,250

+0.1

Other taxes accruing to the Federation

122

 -3.3

253

 -2.9

1,439

+1.4

Total taxes accruing to the Federation

11,280

+9.1

15,694

+8.5

106,339

+4.4

Taxes accruing to the Länder

 

 

 

 

 

 

Inheritance tax

751

+13.6

1,587

+11.3

9,200

 -0.9

Real property transfer tax

1,041

+5.4

2,028

 -7.5

12,400

+1.6

Betting and lottery tax

241

+2.9

451

 -4.6

2,480

+0.1

Beer duty

40

 -1.2

82

 -4.4

580

+0.1

Other taxes accruing to the Länder

42

+16.6

72

+13.5

695

+6.3

Total taxes accruing to the Länder

2,116

+7.9

4,220

 -0.5

25,355

+0.6

EU own resources

 

 

 

 

 

 

Customs duties

412

 -25.9

771

 -25.7

6,300

+9.9

VAT-based own resources

513

+0.7

988

+5.7

5,600

+5.5

GNI-based own resources

1,653

 -35.0

2,357

 -36.3

23,850

+3.8

Plastics own resources

130

 -5.7

249

 -1.8

1,420

 -0.2

Total EU own resources

2,708

 -27.7

4,365

 -26.4

37,170

+4.9

Federation³

29,649

+9.8

55,105

+9.0

381,159

+7.1

Länder³

27,961

+6.4

57,706

+6.1

399,858

+4.5

EU

2,708

 -27.7

4,365

 -26.4

37,170

+4.9

Local authorities’ share of income tax and value added tax

3,832

+8.8

8,248

+6.7

59,464

+6.8

Total tax revenue (excluding local authority taxes)

64,150

+5.9

125,424

+5.8

877,651

+5.8

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 October 2023.
Source: Federal Ministry of Finance

2024

February

Year-on-year
change 

January to
February

Year-on-year
change  

2024 estimates⁴

Year-on-year
change

in €m

in %

in €m

in %

in €m

in %

to the top

Tax revenue trends

to the top

Total tax revenue

Overall tax revenue (excluding local authority taxes) was up by approximately 6% on the year in February 2024 (see the table “2024 trends in tax revenue (excluding local authority taxes)”). Joint taxes, which account for the largest share of tax revenue, posted a year-on-year gain of about 5% in the month of February. Revenue trends varied for the individual types of joint tax. Assessed income tax and final withholding tax on interest and capital gains recorded significant revenue growth. Wages tax receipts also increased, but at a much more moderate pace. In contrast, the yields from corporation tax and from non-assessed taxes on earnings were down on the year. Revenue from value added taxes recorded a year-on-year increase, but only because of a very low baseline figure for import VAT in February 2023 that was caused by an accounting-related effect (see further details on specific taxes below). Adjusting for this effect would result in weak outcomes both for value added taxes and for joint taxes as a whole.

Revenue from taxes accruing solely to the Federation was up markedly by roughly 9% on the year in February. Of these taxes, insurance tax accounted for the largest share of revenue in February 2024, as in previous years. February is by far the highest-revenue month for insurance tax, accounting for roughly one third of the total annual yield for this tax. Insurance tax receipts surged by about 7½% in February 2024, an outcome that was most likely driven by higher motor vehicle insurance premiums. Other high-revenue federal taxes posting gains in February included tobacco duty, energy duty and motor vehicle tax. Receipts from solidarity surcharge also grew at a moderate pace. In contrast, receipts from electricity duty were down substantially on the year. This decline was due to the tax relief provided under the German government’s recently adopted “electricity price package”, which manifested itself in the cash figures for electricity duty for the first time in February 2024 (see below).

In February, revenue from taxes accruing solely to the Länder recorded a year-on-year gain for the first time since May 2022, up by just under 8%. This outcome was driven by receipts from real property transfer tax, which grew by about 5% in February, the first year-on-year increase for this tax since mid-2022. This is a continued indication that revenue from real property transfer tax is stabilising at a significantly lower level than in previous years, with monthly receipts now totalling approximately €1bn. However, based on current indicators from the real estate market and the construction sector, February’s slight gain does not signal a sustained upswing. Inheritance tax – the other high-revenue Länder tax in addition to real property transfer tax – also recorded a year-on-year revenue gain in February.

to the top

Apportionment of tax revenue among the different levels of government

The Federation’s take from joint taxes grew by just under 4% on the year in February 2024. This was basically in line with the overall revenue trends for the individual joint taxes, as described above. VAT was the only joint tax where the Federation’s revenue gains lagged behind the pace of overall revenue growth. This was due to the fixed payments that are transferred from the Federation’s share of VAT revenue to the Länder in accordance with the Fiscal Equalisation Act (Finanzausgleichsgesetz). These fixed payments were higher on the year in February 2024 (for details, see the table “Apportionment of VAT revenue in February 2024” below). Accordingly, Länder VAT revenue in February grew at a higher rate than overall VAT revenue.

The Federation’s public transport subsidies to the Länder rose by nearly 17% on the year in February. This increase was mainly due to monthly payments made by the Federation to help the Länder implement the Deutschlandticket, a public transport ticket that is valid throughout Germany. Another contributing factor was the dynamic adjustment of the public transport subsidies, which are raised by 3% per year in accordance with the Local Public Transport Act (Regionalisierungsgesetz). In contrast, supplementary federal grants to the Länder were about 5% lower on the year in February. Transfers of own resources to the EU – which are financed from the Federation’s tax revenues – were also down sharply on the year in February. After accounting for the apportionment of VAT revenue and supplementary federal grants to the Länder, the Federation’s overall tax revenue in February 2024 (including receipts from purely federal taxes) was up by nearly 10% on the year. Länder tax receipts were up by roughly 6½% on the year in February after accounting for the apportionment of VAT revenue and supplementary federal grants. Local authorities’ take from their share of joint taxes was down by just under 9% on the year.

to the top

Apportionment of VAT revenue in February 2024

In February 2024, revenue from value added taxes was distributed as follows among the Federation, Länder and local authorities:

Share of total VAT revenue (€28,427m) as per section 1 of the Fiscal Equalisation Act

52.8%

45.2%

2.0%

€15,014m

€12,846m

€567m

Plus (+) / minus (-):
1/12 of the fixed payments as per section 1 (2) and (2a) of the Fiscal Equalisation Act (€12,740m)

-€1,062m

+€862m

+€200m

Share after accounting for the fixed payments

49.1%

48.2%

2.7%

€13,952m

€13,708m

€767m

Any discrepancies in totals are due to rounding.

 

Federation

Länder

Local authorities

to the top

Further details on specific taxes

to the top

Wages tax

Gross wages tax receipts were up by roughly 3% on the year in February 2024. This rate of increase lagged behind the most recent figures for nominal wages, which grew by over 5% in the fourth quarter of 2023 according to the Federal Statistical Office’s latest data. This is due in part to the fact that the second stage of tax rate adjustments under the Inflation Compensation Act (Inflationsausgleichsgesetz) – which are intended to offset bracket creep –took effect at the beginning of 2024. It is likely that payments of tax-exempt inflation compensation bonuses have also continued to contribute to higher wages. Some wage agreements for 2024 provide for wage increases during the course of the year, which is likely to accelerate the pace of wages tax revenue growth as the year progresses. Recent labour market trends have generally had a neutral impact on wages tax figures: both employment and short-time work have risen only minimally in year-on-year terms. Child benefit payments – which are financed from wages tax receipts – were basically constant on the year in February, with benefit rates remaining unchanged. As a result, cash receipts from wages tax grew at a very similar rate as gross receipts.

to the top

Taxes on earnings

Cash receipts from assessed income tax and corporation tax in February 2024 were driven largely by revenue administration assessments for previous periods. In the case of assessed income tax, February saw a year-on-year increase in (a) back-payments and refunds resulting from assessments and (b) retroactive prepayments. On balance, cash receipts from assessed income tax in February were up sharply on the year by nearly 38%. Research allowance payments financed from assessed income tax receipts nearly tripled on the year, but the total amount had only a negligible impact on net results.

In the case of corporation tax, assessments of tax cases from previous years led to a significantly higher year-on-year increase in refunds than in back-payments during February. Retroactive prepayments resulting from assessments declined on the year. In addition, research allowance payments financed from corporation tax receipts play a more significant role than in the case of assessed income tax. These payments more than doubled on the year in February. On balance, cash receipts from corporation tax were down sharply by about 52% in February. February’s results for both assessed income tax and corporation tax provide little indication of how revenue trends will develop over the course of the year. The first indication for annual trends will likely come in March, when the first prepayments for 2024 are due.

Continuing the pattern of recent months, receipts from final withholding tax on interest and capital gains posted a huge year-on-year gain of 262% in February. This result was probably driven once again by the significant increase in interest rates. An associated factor is the volume of household bank deposits with fixed terms of up to two years, which has grown significantly over the past year and has thereby likely amplified the increase in tax revenue resulting from higher interest rates. In contrast, receipts from the taxation of capital gains are most likely having a smaller impact on revenue trends at this time. Non assessed taxes on earnings were down sharply by 65% on the year in February; however, the baseline revenue figure from February 2023 was significantly inflated due to a special dividend payout. The months that account for the highest amounts of revenue from non-assessed taxes on earnings, and that therefore have the largest impact on annual results, tend to fall in the middle of the year.

to the top

Value added taxes

Revenue from value added taxes was up by approximately 7% on the year in February 2024. This increase was solely due to a base effect in connection with import VAT, however. Specifically, in 2023, some revenue from import VAT was shifted from February into March, because the due date for paying import VAT (the 26th of each month) gave the federal revenue administration only a few working days in February to process payments. As a result, the baseline figure from February 2023 was artificially low, which explains the roughly 87% revenue surge that was recorded for February 2024. Absent this one-off effect, import VAT receipts would have posted an appreciable decline. This is in line with trends in nominal imports, which were down by about 8% on the year in the most recent reporting period, partly due to decreasing prices.

Without the one-off effect that boosted the yield from import VAT, overall revenue from value added taxes would likewise have been down in February, because receipts from domestic VAT fell by 3% on the year. The decline in (domestic) VAT – despite the fact that input tax deductions in connection with import VAT were likely down on the year –was probably due, among other things, to the relatively weak Christmas shopping season as indicated by retail sales figures. In the case of (domestic) VAT, it generally takes two months for accrued revenue to show up in cash statistics.

to the top

Electricity duty

The German government’s electricity price package reduces the price of electricity for manufacturing companies to the lowest rate permitted by the European Union: 0.05 cents per kilowatt hour (this replaces the previous price of over 1.5 cents). This lower price was reflected in year-on-year comparisons of electricity duty receipts for the first time in February, because payments and prepayments of electricity duty for January 2024 (the first month affected by the price reduction) were not due until February. As a result, electricity duty receipts were down by roughly 16½% on the year in February.

to the top

Borrowing and guarantees

Borrowing trends for the Federation in February 2024
in €m

Total

1,647,955

41,688

-41,212

1,648,431

475

-2,979

broken down by purpose

 

 

 

 

 

 

Federal budget

1,510,178

40,387

-40,243

1,510,322

144

-2,899

Special funds with their own borrowing authorisation
(excluding loan financing)

46,535

1,301

-

47,835

1,301

-

Financial Market Stabilisation Fund
(loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz))

22,599

-

-

22,599

-

-

Investment and Redemption Fund

16,672

-

-

16,672

-

-

Economic Stabilisation Fund
(loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)

1,093

-8

-

1,085

-8

-

Economic Stabilisation Fund
(loans to mitigate the impact of the energy crisis pursuant to section 26a of the Stabilisation Fund Act)

71,744

-

-

-

-71.7441

-

Special fund for the Bundeswehr

6,171

1,309

-

7,479

1,309

-

Loan financing

91,243

-

-969

90,274

-969

-80

Financial Market Stabilisation Fund
(loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)

56,400

-

-

56,400

-

-49

Economic Stabilisation Fund
(loans for KfW pursuant to section 23 of the Stabilisation Fund Act)

34,843

-

-969

33,874

-969

-31

Any discrepancies in totals are due to rounding.

Source: Federal Ministry of Finance

 

  

Debt level

Borrowing
(increase)

Debt repayment
(decrease)

Debt level

Change in debt level
(balance)

Interest

31 January
2024

February

February

29 February
2024

February

February

Borrowing trends for the Federation (budget and special funds, excluding loan financing) in February 2024
in €m

Total

1,556,712

41,688

-40,243

1,558,157

1,445

-2,899

broken down by purpose

 

 

 

Federal budget

1,510,178

40,387

-40,243

1,510,322

144

-2,899

Financial Market Stabilisation Fund
(loans for expenses pursuant to section 9 (1) of the Stabilisation Fund Act)

22,599

-

-

22,599

-

-

Investment and Redemption Fund

16,672

-

-

16,672

-

-

Economic Stabilisation Fund
(loans for recapitalisation measures pursuant to section 22 of the Stabilisation Fund Act)

1,093

-8

-

1,085

-8

-

Economic Stabilisation Fund
(loans to mitigate the impact of the energy crisis pursuant to section 26a of the Stabilisation Fund Act, excluding the granting of loans)

71,744

-

-

-

-71,744

-

Special fund for the Bundeswehr

6,171

1,309

-

7,479

1,309

-

broken down by debt type

 

 

 

 

 

 

Conventional federal securities

1,431,480

41,113

-40,243

1,432,350

870

-2,331

30-year federal bonds

339,335

7,043

-

346,379

7,043

-166

15-year federal bonds

66,501

-84

-

66,417

-84

18

10-year federal bonds

532,643

9,312

-20,971

520,985

-11,659

-1,694

7-year federal bonds

72,119

2,595

-

74,714

2,595

63

Federal notes

180,726

3,467

-

184,192

3,467

-43

Federal Treasury notes

107,783

8,230

-

116,012

8,230

-22

Treasury discount papers issued by the Federation

132,372

10,550

-19,272

123,650

-8,722

-486

Inflation-linked federal securities

60,454

-150

-

60,305

-150

-35

Green federal securities

56,007

724

-

56,731

724

-566

Securitised loans

4,297

-

-

4,297

-

-17

Other loans and ordinary debts

4,474

-

-

4,474

-

-

For information purposes:

 

 

 

 

 

 

Liabilities from the indexing of inflation-linked federal securities

14,269

X

X

14,336

67

X

Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz)

13,569

X

X

13,569

-

X

Liabilities 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, the total given for reserves to make provision for final payments on inflation-linked federal securities pursuant to the Final Payment Financing Act includes 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). 

Any discrepancies in totals are due to rounding.

Source: Federal Ministry of Finance

 

  

Debt level

Borrowing
(increase)

Debt repayment
(decrease)

Debt level

Change in debt level
(balance)

Interest

31 January
2024

February

February

29 February
2024

February

February

Guarantees

  

Authorised amount

Amount allocated as of
31 December 2023

Amount allocated as of
31 December 2022

in €bn

Export credit guarantees

150.0

113.1

119.1

Loans to foreign debtors, foreign direct investment, EIB loans

60.0

39.8

39.7

Financial cooperation projects

38.8

31.6

31.5

Food stockpiling

0.7

0.0

0.0

Domestic guarantees

650.0

360.7

346.6

International financial institutions

85.0

75.5

75.5

Treuhandanstalt successor organisations

1.0

1.0

1.0

Interest compensation guarantees

15.0

15.0

15.0

to the top

Calendar

Publication schedule¹ of the monthly reports and fiscal data

April 2024 issue

March 2024

23 April 2024

May 2024 issue

April 2024

24 May 2024

June 2024 issue

May 2024

20 June 2024

July 2024 issue

June 2024

23 July 2024

August 2024 issue

July 2024

22 August 2024

September 2024 issue

August 2024

20 September 2024

October 2024 issue

September 2024

22 October 2024

November 2024 issue

October 2024

21 November 2024

December 2024 issue

November 2024

20 December 2024

¹ In accordance with the IMF’s Special Data Dissemination Standard Plus (SDDS Plus); see http://dsbb.imf.org

Source: Federal Ministry of Finance

Monthly report

Reporting period

Publication date

Key dates on the fiscal and economic policy agenda

11–12 April 2024

Eurogroup and ECOFIN Council meetings in Luxembourg

17–19 April 2024 

 Spring meetings of the International Monetary Fund and the World Bank Group with meeting of G20 finance ministers and central bank governors in Washington, D.C.

7 May 2024

Global Solutions Summit, Berlin, Germany

13–14 May 2024

Eurogroup and ECOFIN Council meetings in Brussels, Belgium

23–25 May 2024

Meeting of G7 finance ministers and central bank governors in Stresa, Italy

20–21 June 2024

Eurogroup and ECOFIN Council meetings in Luxembourg

15–16 July 2024

Eurogroup and ECOFIN Council meetings in Brussels, Belgium

25–26 July 2024

Meeting of G20 finance ministers and central bank governors in Rio de Janeiro, Brazil

13–14 August 2024

Meeting of the finance ministers of Germany, Austria, Switzerland, Luxembourg and Liechtenstein in Austria