Federal budget trends up to and including September 2024
Actual 2023 | 2024 target¹ | Actual (year to date) January–September 2024² | ||
Expenditure (€bn)³ | 457.1 | 488.9 | 333.7 | |
---|---|---|---|---|
| -0.8 | |||
Revenue (€bn)⁴ | 392.2 | 428.2 | 301.2 | |
| +8.0 | |||
Tax revenue (€bn) | 356.1 | 374.4 | 269.1 | |
| +4.0 | |||
Balance of pass-through funds (€bn) | 0.0 | 0.0 | 0.0 | |
Fiscal balance (€bn) | -64.9 | -60.7 | -32.5 | |
Financing/use of surplus: | 64.9 | 60.7 | 32.5 | |
| - | - | 62.4 | |
| 0.2 | 0.2 | 0.2 | |
| 37.5 | 10.2 | 0.0 | |
Net borrowing⁶ (€bn) | 27.2 | 50.3 | -30.0 | |
Any discrepancies in totals are due to rounding. 1 Including government draft of a supplementary federal budget for 2024 of 17 July 2024. 2 As per accounts. 3 With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. 4 With the exception of revenue from loans on the credit market, withdrawals from reserves, revenue from cash surpluses and seigniorage. Excluding revenue from internal offsetting. 5 Negative values denote accumulation of reserves. 6 (-) debt repayment; (+) borrowing Source: Federal Ministry of Finance |
Revenue
Federal revenue (excluding seigniorage, withdrawal from reserves and revenue from loans) totalled €301.2bn for the period from January to September 2024, up by 8.0% (€22.4bn) on the year. Tax revenues were up by 4.0% (€10.4bn) on the year. For further information about tax revenues, please refer to the article “Tax revenues in September 2024” [in German only] in the current issue of the monthly report.
The category of “other revenue” totalled €32.1bn in September 2024, a year-on-year gain of 59.2% (€12.0bn). This included a €4.0bn year-on-year increase in receipts from the distance-based commercial vehicle toll, a gain largely driven by the recent addition of a CO2 component to the toll. In addition, revenue from sales of holdings and from the liquidation of other capital assets belonging to the Federation rose by €3.5bn compared with the same period last year. Furthermore, when the special fund for digital infrastructure was dissolved, an amount of €1.8bn was transferred to the core budget, because the funding that is being provided to the Länder for the purpose of implementing the Digital Pact for Schools and expanding broadband networks is now being drawn from the core budget. Revenue generated in connection with the Offshore Wind Act (Windenergie-auf-See-Gesetz) totalled €1.3bn.
Expenditure
In the period from January to September 2024, federal expenditure totalled €333.7bn, down slightly by 0.8% (€2.7bn) on the year. Broken down by economic category, investment spending was down by 8.7% (€2.8bn) on the year, while consumption spending remained roughly at the same level (up by €0.1bn on the year).
In the area of consumption spending, ongoing grants and subsidies recorded a year-on-year increase of 2.1% (€4.4bn). Human resources expenditure was up by 5.4% (€1.7bn) on the year. In contrast, interest expenditure declined by 12.7% (€4.4bn) on the year, while operating expenditure fell by 5.4% (€1.5bn). The increase in ongoing grants and subsidies was the result of contrasting trends: spending on citizen’s benefit was up by €2.7bn, and the federal subsidy to the general pension insurance system rose by €1.8bn on the year. Federal grants to reimburse the Länder for social spending on basic income support for older people and for people with reduced earning capacity climbed by €0.7bn. Spending on efforts to enhance security, defence and stability in partner countries likewise increased by €0.7bn on the year. In contrast, federal payments to the health fund to cover pandemic-related costs declined by €1.3bn on the year. Furthermore, no money was budgeted in 2024 for a supplementary federal subsidy to the health fund or for federal lump-sum contributions to the long-term care insurance system. This led to year-on-year spending reductions of €1.5bn and €1.0bn, respectively, in the period from January to September 2024.
As in previous months, the decline in investment spending was mainly attributable to a special factor in 2023: 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 up by 13.8% (€3.5bn) on the year. This increase was mainly due to an allocation of €3.0bn to increase the equity of Deutsche Bahn AG. A total of €5.5bn is earmarked for this purpose in the 2024 federal budget. Additionally, investment grants to Autobahn GmbH des Bundes were €0.8bn higher than in January–September 2023.
Fiscal balance
The federal budget recorded a deficit of €32.5bn for the January–September 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.
Actual 2023 | 2024 target¹ | Actual (year to date) | Year-on-year change (year to date) | ||||||||
January– September 2023 | January– September 2024 | ||||||||||
in €m | share in % | in €m | share in % | in €m | in % | ||||||
General public services | 111,314 | 24.4 | 113,938 | 23.3 | 76,229 | 76,524 | +0.4 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
| 11,866 | 2.6 | 11,054 | 2.3 | 6,673 | 6,168 | -7.6 | ||||
| 55,521 | 12.1 | 58,346 | 11.9 | 38,739 | 38,570 | -0.4 | ||||
| 22,243 | 4.9 | 23,411 | 4.8 | 16,658 | 17,450 | +4.8 | ||||
| 6,961 | 1.5 | 6,933 | 1.4 | 4,654 | 5,118 | +10.0 | ||||
Education, science, research, cultural affairs | 29,479 | 6.4 | 30,680 | 6.3 | 17,666 | 17,901 | +1.3 | ||||
| 5,205 | 1.1 | 4,338 | 0.9 | 3,870 | 2,890 | -25.3 | ||||
| 16,973 | 3.7 | 17,595 | 3.6 | 9,073 | 9,189 | +1.3 | ||||
Social security, family affairs and youth, labour market policy | 215,222 | 47.1 | 222,010 | 45.4 | 169,556 | 173,376 | +2.3 | ||||
| 136,028 | 29.8 | 137,841 | 28.2 | 110,000 | 111,073 | +1.0 | ||||
| |||||||||||
| 103,053 | 22.5 | 107,556 | 22.0 | 84,267 | 87,913 | +4.3 | ||||
| 18,968 | 4.1 | 16,026 | 3.3 | 14,523 | 12,068 | -16.9 | ||||
| 48,212 | 10.5 | 51,023 | 10.4 | 35,706 | 39,082 | +9.5 | ||||
| |||||||||||
| 25,808 | 5.6 | 29,700 | 6.1 | 19,647 | 22,330 | +13.7 | ||||
| 11,576 | 2.5 | 11,600 | 2.4 | 8,617 | 9,299 | +7.9 | ||||
| 13,396 | 2.9 | 14,571 | 3.0 | 9,950 | 10,845 | +9.0 | ||||
| 9,873 | 2.2 | 10,927 | 2.2 | 8,001 | 8,616 | +7.7 | ||||
| 2,240 | 0.5 | 1,833 | 0.4 | 1,595 | -926 | -158.1 | ||||
Health, environment, sport, recreation | 6,561 | 1.4 | 5,486 | 1.1 | 4,038 | 3,238 | -19.8 | ||||
Housing, urban development, regional planning and local community services | 3,549 | 0.8 | 4,041 | 0.8 | 1,347 | 2,000 | +48.5 | ||||
| 2,271 | 0.5 | 2,745 | 0.6 | 1,046 | 1,640 | +56.7 | ||||
Food, agriculture and forestry | 1,723 | 0.4 | 1,756 | 0.4 | 668 | 647 | -3.1 | ||||
Energy and water management, trade and services | 14,573 | 3.2 | 13,049 | 2.7 | 10,104 | 3,584 | -64.5 | ||||
| 1,799 | 0.4 | 4,447 | 0.9 | 818 | 1,290 | +57.6 | ||||
| 7,032 | 1.5 | 165 | 0.0 | 6,785 | 77 | -98.9 | ||||
| 1,755 | 0.4 | 4,155 | 0.8 | 479 | 678 | +41.6 | ||||
Transport and communication | 28,478 | 6.2 | 35,856 | 7.3 | 16,821 | 20,583 | +22.4 | ||||
| 9,949 | 2.2 | 9,824 | 2.0 | 5,710 | 6,611 | +15.8 | ||||
| 10,795 | 2.4 | 17,884 | 3.7 | 5,698 | 8,549 | +50.0 | ||||
Financial management | 46,228 | 10.1 | 62,065 | 12.7 | 39,973 | 35,851 | -10.3 | ||||
| 7,323 | 1.6 | 31,933 | 6.5 | 4,246 | 4,565 | +7.5 | ||||
| 37,687 | 8.2 | 37,445 | 7.7 | 34,759 | 30,358 | -12.7 | ||||
Total expenditure² | 457,129 | 100.0 | 488,880 | 100.0 | 336,401 | 333,705 | -0.8 | ||||
1 Including government draft of a supplementary federal budget for 2024 of 17 July 2024. 2 With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. Source: Federal Ministry of Finance |
Actual 2023 | 2024 target¹ | Actual (year to date) | Year-on-year change (year to date) | ||||
January– September 2023 | January– September 2024 | ||||||
in €m | share in % | in €m | share in % | in €m | in % | ||
Consumption expenditure | 402,167 | 88.0 | 428,876 | 87.7 | 304,567 | 304,637 | +0.0 |
---|---|---|---|---|---|---|---|
| 40,119 | 8.8 | 43,521 | 8.9 | 30,902 | 32,582 | +5.4 |
| 29,823 | 6.5 | 33,054 | 6.8 | 22,746 | 23,910 | +5.1 |
| 10,296 | 2.3 | 10,468 | 2.1 | 8,156 | 8,672 | +6.3 |
| 43,654 | 9.5 | 45,038 | 9.2 | 27,336 | 25,850 | -5.4 |
| 1,213 | 0.3 | 1,214 | 0.2 | 840 | 817 | -2.7 |
| 17,035 | 3.7 | 15,247 | 3.1 | 9,991 | 8,507 | -14.9 |
| 25,407 | 5.6 | 28,577 | 5.8 | 16,504 | 16,526 | +0.1 |
| 37,648 | 8.2 | 37,409 | 7.7 | 34,726 | 30,325 | -12.7 |
| 278,953 | 61.0 | 301,147 | 61.6 | 209,975 | 214,334 | +2.1 |
| 40,672 | 8.9 | 51,416 | 10.5 | 29,446 | 31,556 | +7.2 |
| 238,281 | 52.1 | 249,732 | 51.1 | 180,530 | 182,778 | +1.2 |
| |||||||
| 33,130 | 7.2 | 38,042 | 7.8 | 21,327 | 21,805 | +2.2 |
| 37,982 | 8.3 | 44,779 | 9.2 | 29,121 | 31,849 | +9.4 |
| 144,498 | 31.6 | 143,925 | 29.4 | 116,055 | 116,030 | -0.0 |
| 1,792 | 0.4 | 1,761 | 0.4 | 1,629 | 1,546 | -5.1 |
Investment expenditure | 54,961 | 12.0 | 70,822 | 14.5 | 31,834 | 29,068 | -8.7 |
| 48,260 | 10.6 | 64,303 | 13.2 | 28,243 | 24,934 | -11.7 |
| 37,119 | 8.1 | 44,128 | 9.0 | 19,592 | 21,030 | +7.3 |
| 9,741 | 2.1 | 14,551 | 3.0 | 8,416 | 783 | -90.7 |
| 1,400 | 0.3 | 5,624 | 1.2 | 235 | 3,121 | X |
| 6,702 | 1.5 | 6,519 | 1.3 | 3,591 | 4,134 | +15.1 |
| 4,135 | 0.9 | 3,971 | 0.8 | 2,264 | 2,561 | +13.1 |
| 2,428 | 0.5 | 2,478 | 0.5 | 1,262 | 1,494 | +18.4 |
| 139 | 0.0 | 70 | 0.0 | 66 | 79 | +19.7 |
General reduction/increase in expenditure | 0 | 0.0 | -10,818 | -2.2 | 0 | 0 | X |
Total expenditure² | 457,129 | 100.0 | 488,880 | 100.0 | 336,401 | 333,705 | -0.8 |
1 Including government draft of a supplementary federal budget for 2024 of 17 July 2024. 2 With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. Source: Federal Ministry of Finance |
Actual 2023 | 2024 target¹ | Actual (year to date) | Year-on-year change (year to date) | ||||
January– September 2023 | January– September 2024 | ||||||
in €m | share in % | in €m | share in % | in €m | in % | ||
Taxes² | 356,082 | 90.8 | 374,386 | 87.4 | 258,619 | 269,053 | +4.0 |
---|---|---|---|---|---|---|---|
Federal share of joint taxes: | 317,036 | 80.8 | 333,107 | 77.8 | 234,389 | 238,517 | +1.8 |
| 175,898 | 44.8 | 182,708 | 42.7 | 126,394 | 130,365 | +3.1 |
| |||||||
| 100,382 | 25.6 | 107,058 | 25.0 | 70,338 | 73,842 | +5.0 |
| 31,190 | 8.0 | 30,430 | 7.1 | 22,187 | 22,407 | +1.0 |
| 18,221 | 4.6 | 15,975 | 3.7 | 14,876 | 13,382 | -10.0 |
| 3,679 | 0.9 | 7,920 | 1.8 | 2,489 | 6,136 | +146.5 |
| 22,426 | 5.7 | 21,325 | 5.0 | 16,504 | 14,599 | -11.5 |
| 138,452 | 35.3 | 147,660 | 34.5 | 106,509 | 106,646 | +0.1 |
| 2,685 | 0.7 | 2,739 | 0.6 | 1,487 | 1,506 | +1.3 |
Energy duty | 36,658 | 9.3 | 36,400 | 8.5 | 22,635 | 22,504 | -0.6 |
Tobacco duty | 14,672 | 3.7 | 15,830 | 3.7 | 10,378 | 10,461 | +0.8 |
Solidarity surcharge | 12,239 | 3.1 | 12,150 | 2.8 | 9,144 | 9,392 | +2.7 |
Insurance tax | 16,851 | 4.3 | 18,100 | 4.2 | 14,037 | 15,156 | +8.0 |
Electricity duty | 6,832 | 1.7 | 5,710 | 1.3 | 5,167 | 4,216 | -18.4 |
Motor vehicle tax | 9,514 | 2.4 | 9,750 | 2.3 | 7,446 | 7,567 | +1.6 |
Alcohol duty including alcopops duty | 2,160 | 0.6 | 2,161 | 0.5 | 1,580 | 1,485 | -6.0 |
Coffee duty | 1,030 | 0.3 | 1,030 | 0.2 | 752 | 728 | -3.2 |
Aviation tax | 1,486 | 0.4 | 1,850 | 0.4 | 1,079 | 1,298 | +20.3 |
Sparkling wine duty and intermediate products duty | 385 | 0.1 | 385 | 0.1 | 294 | 286 | -2.7 |
EU energy crisis contribution | 0 | 0.0 | 1,000 | 0.2 | 0 | 1,936 | X |
Other taxes accruing to the Federation | 2 | 0.0 | 2 | 0.0 | 0 | 2 | X |
Deductions | |||||||
Consolidation assistance for the Länder | 800 | X | 800 | X | 800 | 800 | 0.0 |
Supplementary grants to Länder | 10,883 | X | 11,052 | X | 8,086 | 8,555 | +5.8 |
EU own resources (GNI-based) | 22,981 | X | 22,010 | X | 18,123 | 13,578 | -25.1 |
EU own resources (VAT-based) | 5,306 | X | 5,600 | X | 3,825 | 4,209 | +10.0 |
EU own resources (plastics) | 1,423 | X | 1,410 | X | 1,035 | 1,065 | +2.9 |
Grants to Länder for public transport | 12,398 | X | 13,225 | X | 9,673 | 9,543 | -1.3 |
Grants to Länder for motor vehicle tax and HGV toll | 8,992 | X | 8,992 | X | 6,744 | 6,744 | 0.0 |
Other revenue | 36,147 | 9.2 | 53,824 | 12.6 | 20,175 | 32,127 | +59.2 |
Administrative revenue | 15,963 | 4.1 | 21,331 | 5.0 | 10,708 | 15,174 | +41.7 |
Revenue from economic activity | 5,177 | 1.3 | 4,191 | 1.0 | 2,317 | 3,362 | +45.1 |
Interest revenue | 2,195 | 0.6 | 1,932 | 0.5 | 1,392 | 2,018 | +45.0 |
Loan repayments, holdings, privatisation proceeds | 1,561 | 0.4 | 1,188 | 0.3 | 732 | 4,612 | +530.1 |
Revenue from grants and subsidies | 10,268 | 2.6 | 21,857 | 5.1 | 4,904 | 6,336 | +29.2 |
Total revenue³ | 392,229 | 100.0 | 428,210 | 100.0 | 278,794 | 301,180 | +8.0 |
1 Including government draft of a supplementary federal budget for 2024 of 17 July 2024. 2 Any discrepancies in relation to the table “2023 trends in tax revenue (excluding local authority taxes)” are due to the methodology used. 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. Source: Federal Ministry of Finance |
Tax revenue in September 2024
2024 | September | Year-on-year change | January to September | Year-on-year change | 2024 estimates⁴ | Year-on-year change |
in €m | in % | in €m | in % | in €m | in % | |
Joint taxes | ||||||
---|---|---|---|---|---|---|
| 18,413 | +5.9 | 179,805 | +4.8 | 251,900 | +6.6 |
| 17,839 | +5.1 | 52,720 | +1.0 | 71,600 | -2.4 |
| 1,094 | -1.0 | 26,716 | -10.2 | 31,950 | -12.3 |
| 1,261 | +89.5 | 13,945 | +146.5 | 18,000 | +115.3 |
| 9,426 | -4.8 | 29,197 | -11.5 | 42,650 | -4.9 |
| 26,949 | +13.5 | 221,243 | +2.0 | 306,000 | +5.0 |
Total joint taxes | 74,981 | +7.5 | 523,626 | +2.9 | 722,100 | +4.6 |
Trade tax apportionments paid to Federation and Länder | ||||||
| 3 | +13.6 | 3,635 | +5.3 | 6,610 | +4.1 |
| 0 | X | 2 | X | 0 | X |
Total trade tax apportionments | 3 | +13.6 | 3,637 | +5.4 | 6,610 | +4.1 |
Taxes accruing to the Federation | ||||||
| 3,321 | +7.9 | 22,504 | -0.6 | 36,400 | -0.7 |
| 941 | -25.3 | 10,461 | +0.8 | 15,830 | +7.9 |
| 166 | -0.5 | 1,483 | -6.1 | 2,160 | +0.0 |
| 941 | +7.5 | 15,156 | +8.0 | 18,100 | +7.4 |
| 498 | -14.6 | 4,216 | -18.4 | 5,710 | -16.4 |
| 714 | -7.7 | 7,567 | +1.6 | 9,750 | +2.5 |
| 190 | +28.2 | 1,298 | +20.3 | 1,850 | +24.5 |
| 1,645 | +4.7 | 9,392 | +2.7 | 12,150 | -0.7 |
| 99 | -14.8 | 2,954 | +181.3 | 2,418 | +70.4 |
Total taxes accruing to the Federation | 8,516 | -0.7 | 75,030 | +3.5 | 104,368 | +2.5 |
Taxes accruing to the Länder | ||||||
| 789 | +20.3 | 7,453 | +6.6 | 9,500 | +2.3 |
| 1,078 | +20.8 | 9,446 | +1.6 | 11,900 | -2.5 |
| 205 | +0.8 | 1,853 | -0.2 | 2,465 | -0.5 |
| 52 | -1.6 | 431 | -1.6 | 580 | +0.1 |
| 58 | +13.0 | 594 | +11.6 | 705 | +7.9 |
Total taxes accruing to the Länder | 2,182 | +17.6 | 19,777 | +3.4 | 25,150 | -0.2 |
EU own resources | ||||||
| 492 | +27.1 | 3,901 | -9.6 | 5,450 | -4.9 |
| 467 | +9.8 | 4,209 | +10.0 | 5,600 | +5.5 |
| 1,598 | -22.6 | 13,578 | -25.1 | 22,010 | -4.2 |
| 118 | +2.9 | 1,065 | +2.9 | 1,410 | -0.9 |
Total EU own resources | 2,675 | -10.6 | 22,753 | -16.7 | 34,470 | -2.7 |
Federation³ | 37,581 | +7.1 | 271,650 | +4.0 | 375,596 | +5.5 |
Länder³ | 39,590 | +8.2 | 288,800 | +3.3 | 394,419 | +3.1 |
EU | 2,675 | -10.6 | 22,753 | -16.7 | 34,470 | -2.7 |
Local authorities’ share of income tax and value added tax | 6,327 | +7.1 | 42,768 | +5.9 | 59,193 | +6.3 |
Total tax revenue (excluding local authority taxes) | 86,173 | +6.9 | 625,971 | +2.9 | 863,678 | +4.1 |
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 2024. Source: Federal Ministry of Finance |
Tax revenue trends
Total tax revenue
Overall tax revenue (excluding local authority taxes) was up by just under 7% on the year in September 2024 (see the table “2024 trends in tax revenue (excluding local authority taxes)”).
Receipts from joint taxes, which account for the largest share of tax revenue, rose at a slightly faster pace, up by 7½% on the year. Revenue from withholding tax on interest and capital gains continued to post strong growth. Receipts from value added taxes, wages tax and assessed income tax also recorded year-on-year gains in September. In contrast, revenue from corporation tax and non-assessed taxes on earnings was down on the year in September. In cumulative terms, the yield from joint taxes grew by just under 3% on the year in the first nine months of 2024.
Revenue from taxes accruing to the Federation was down by just under 1% on the year in September. Here, receipts from tobacco duty (which have been quite volatile in recent months) posted the most noticeable year-on-year decline. Receipts from motor vehicle tax and electricity duty were also down on the year (in the case of electricity duty, this was due to tax relief measures under the government’s electricity price package). In contrast, energy duty, insurance tax and the solidarity surcharge all posted revenue gains in September. In cumulative terms, revenue from taxes accruing to the Federation was up by roughly 3½% on the year in the first nine months of 2024.
Revenue from taxes accruing to the Länder surged by nearly 18% on the year in the month of September. As in previous months, receipts from real property transfer tax totalled approximately €1.1bn. Due to the low baseline figure from September 2023, this represented a year-on-year gain of about 21%. The yield from inheritance tax grew at a similar rate, also partly due to a relatively low baseline figure from September 2023. Taken cumulatively, revenue from taxes accruing to the Länder increased by roughly 3½% on the year in the first nine months of 2024, similar to the rate of revenue growth for taxes that accrue to the Federation.
Apportionment of tax revenue among the different levels of government
The Federation’s tax receipts (after accounting for supplementary federal grants) were up by approximately 7% on the year in September 2024. The Federation’s take from joint taxes increased at approximately the same rate as overall revenue from joint taxes. This is due, among other things, to the fact that the Federation’s share of VAT revenue in September 2024 was roughly the same as in September 2023, after taking into account the fixed payments that are transferred from the Federation’s share of VAT revenue to the Länder and local authorities in accordance with the Fiscal Equalisation Act (see the table “Apportionment of VAT revenue in September 2024” below). The slight decrease in receipts from federal taxes and the increase in payments of public transport subsidies and supplementary federal grants to the Länder were offset by a decline in transfers of own resources to the EU.
Länder tax receipts (after accounting for supplementary federal grants) were up by roughly 8% on the year in September, slightly outpacing the growth rate posted for the Federation. This outcome reflects the sharp rise in revenue from Länder taxes and the increase in public transport subsidies from the Federation (see above). Local authorities’ take from joint taxes grew by approximately 7% on the year in September, in line with the increase in overall revenue from joint taxes.
Apportionment of VAT revenue in September 2024
In September 2024, revenue from value added taxes was distributed as follows among the Federation, Länder and local authorities:
Federation | Länder | Local authorities | |
Share of total VAT revenue (€26,949m) | 52.8% | 45.2% | 2.0% |
---|---|---|---|
€14,233m | €12,178m | €538m | |
Plus (+) / minus (-): | -€1,362m | +1,162m | +€200m |
Share after accounting for fixed payments | 47.8% | 49.5% | 2.7% |
€12,871m | €13,340m | €738m | |
Any discrepancies in totals are due to rounding. |
Further details on specific taxes
Wages tax
Net revenue from wages tax grew by nearly 6% on the year in September 2024. Since child benefit payments (which are financed from wages tax receipts) remained basically unchanged on the year, this net result is attributable solely to the increase in gross wages tax receipts (which were up by just under 5%). The increase in gross receipts was itself driven primarily by ongoing substantial increases in nominal wages, as the effect of tax-free inflation compensation bonuses on year-on-year results continues to fade. Due to the weak state of the economy, the positive impact of employment trends on year-on-year revenue figures continues to decline. In addition, short-time work levels remain elevated.
Assessed income tax and corporation tax
In September, revenue outcomes for both of these taxes were largely driven by prepayments for the current year. In the case of assessed income tax, prepayments were up by about 2% on the year. The revenue administration’s assessment activities added to this gain, because the rise in back-payments significantly outpaced the increase in refunds. Altogether, cash receipts posted a year-on-year gain of about 5%. Research allowance payments financed from assessed income tax receipts remained nearly twice as high as in September 2023. However, at roughly €4m, they had a negligible impact on net results.
In contrast, prepayments of corporation tax for the current year were down by about 4% compared with September 2023. After accounting for appreciable increases in back-payments and refunds for past assessment periods, cash receipts from corporation tax ended up declining by just under 5% on the year in September. Research allowance payments financed from corporation tax revenue increased by around 55% on the year to approximately €56m.
Capital income taxes
Revenue from withholding tax on interest and capital gains was up by nearly 90% on the year in September, similar to the growth rate posted in previous months. In cumulative terms, receipts from this tax increased by nearly 150% on the year in the first nine months of 2024. Growth rates are likely to be somewhat lower in the coming months given the higher baseline figures from last year that will then come into play. The yield from non-assessed taxes on earnings was down slightly by about 1% on the year in September. Revenue from these taxes tends to be lower in September. Taken cumulatively, revenue from non-assessed taxes on earnings fell by approximately 10% on the year in the first nine months of 2024.
Value added taxes
After posting declines in July and August, revenue from value added taxes surged by 13½% on the year in September. In cumulative terms, however, the yield from value added taxes was up by only 2% on the year in the first nine months of 2024. Given the high level of volatility in VAT revenue figures so far this year, September’s sharp increase says little about likely growth rates in the remaining months of 2024. Among the indicators that point to trends in the tax base for value added taxes, nominal retail sales grew in August and were up by about 3% on the year according to the latest data (which is now being reported again by the Federal Statistical Office). If this growth is sustained, retail sales can be expected to lend renewed positive momentum to VAT revenue trends.
Taking a closer look at the taxes that make up overall VAT revenue, the figures for import VAT show a year-on-year gain of about 2% in September. However, given the decline in imports of goods that was recorded in August, growth rates for import VAT can probably be expected to weaken again in the coming months. Revenue from domestic VAT was up by about 17% on the year in September.
Borrowing and guarantees
Debt level | Borrowing (increase) | Debt repayment (decrease) | Debt level | Change in debt level (balance) | Interest | |
31 August 2024 | September | September | 30 Septem- ber 2024 | September | September | |
Total | 1,673,532 | 32,300 | -32,488 | 1,673,345 | -188 | -1,056 |
---|---|---|---|---|---|---|
broken down by purpose | ||||||
| 1,529,468 | 26,545 | -23,760 | 1,532,254 | 2,786 | -644 |
| 53,863 | 5,256 | -4,228 | 54,890 | 1,027 | -375 |
| 22,664 | 949 | -1,645 | 21,967 | -697 | -158 |
| 16,778 | 1,298 | -1,298 | 16,778 | - | -129 |
| 631 | 28 | - | 659 | 28 | - |
| 13,790 | 2,981 | -1,285 | 15,486 | 1,696 | -88 |
| 90,200 | 500 | -4,500 | 86,200 | -4,000 | -37 |
| 58,300 | 500 | - | 58,800 | 500 | -19 |
| 31,900 | - | -4,500 | 27,400 | -4,500 | -18 |
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 August 2024 | September | September | 30 Septem- ber 2024 | September | September | ||
Total | 1,583,332 | 31,800 | -27,988 | 1,587,145 | 3,812 | -1,019 | |
---|---|---|---|---|---|---|---|
broken down by purpose | |||||||
| 1,529,468 | 26,545 | -23,760 | 1,532,254 | 2,786 | -644 | |
| 22,664 | 949 | -1,645 | 21,967 | -697 | -158 | |
| 16,778 | 1,298 | -1,298 | 16,778 | - | -129 | |
| 631 | 28 | - | 659 | 28 | - | |
| 13,790 | 2,981 | -1,285 | 15,486 | 1,696 | -88 | |
broken down by debt type | |||||||
| 1,448,834 | 32,388 | -27,903 | 1,453,318 | 4,485 | -923 | |
| 362,975 | 2,034 | - | 365,009 | 2,034 | -107 | |
| 74,940 | 1,459 | - | 76,398 | 1,459 | -58 | |
| 513,806 | 5,416 | - | 519,222 | 5,416 | 65 | |
| 83,317 | 2,706 | - | 86,023 | 2,706 | 129 | |
| 194,348 | 1,942 | - | 196,290 | 1,942 | -19 | |
| 114,455 | 7,089 | -12,484 | 109,060 | -5,396 | -495 | |
| 104,994 | 11,742 | -15,419 | 101,317 | -3,676 | -438 | |
| 59,917 | -43 | - | 59,874 | -43 | -11 | |
| 65,893 | -544 | - | 65,349 | -544 | -56 | |
| 4,215 | - | -85 | 4,130 | -85 | -48 | |
| 4,474 | - | - | 4,474 | - | - | |
For information purposes: | |||||||
Liabilities from the indexing of | 15,682 | X | X | 15,641 | -42 | X | |
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz) | 15,619 | X | X | 15,619 | - | 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 |
Authorised amount | Amount allocated as of 30 September 2024 | Amount allocated as of 30 September 2023 | |
in €bn | |||
Export credit guarantees | 140.0 | 110.7 | 114.6 |
---|---|---|---|
Loans to foreign debtors, foreign direct investment, EIB loans | 70.0 | 39.1 | 39.9 |
Financial cooperation projects | 38.8 | 32.5 | 33.9 |
Food stockpiling | 0.7 | 0.0 | 0.0 |
Domestic guarantees | 650.0 | 216.4 | 347.7 |
International financing 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 |
Calendar
Monthly report | Reporting period | Publication date |
November 2024 issue | October 2024 | 21 November 2024 |
December 2024 issue | November 2024 | 20 December 2024 |
January 2025 issue | December 2024 | 30 January 2025 |
February 2025 issue | January 2025 | 20 February 2025 |
March 2025 issue | February 2025 | 20 March 2025 |
April 2025 issue | March 2025 | 23 April 2025 |
May 2025 issue | April 2025 | 22 May 2025 |
June 2025 issue | May 2025 | 20 June 2025 |
July 2025 issue | June 2025 | 22 July 2025 |
August 2025 issue | July 2025 | 21 August 2025 |
September 2025 issue | August 2025 | 23 September 2025 |
October 2025 issue | September 2025 | 21 October 2025 |
November 2025 issue | October 2025 | 20 November 2025 |
December 2025 issue | November 2025 | 23 December 2025 |
1 In accordance with the IMF’s Special Data Dissemination Standard Plus (SDDS Plus); see http://dsbb.imf.org Source: Federal Ministry of Finance |
23–25 October 2024 | Annual meetings of the IMF and World Bank, including a meeting of G20 finance ministers and central bank governors, in Washington, D.C. |
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4–5 November 2024 | Eurogroup and ECOFIN Council meetings in Brussels, Belgium |
18–19 November 2024 | G20 Heads of State and Government Summit (with the participation of finance ministers) in Rio de Janeiro, Brazil |
9–10 December 2024 | Eurogroup and ECOFIN Council meetings in Brussels, Belgium |
20–21 January 2025 | Eurogroup and ECOFIN Council meetings in Brussels, Belgium |
17–18 February 2025 | Eurogroup and ECOFIN Council meetings in Brussels, Belgium |
26–27 February 2025 | Meeting of G20 finance ministers and central bank governors in Cape Town, South Africa |
10–11 March 2025 | Eurogroup and ECOFIN Council meetings in Luxembourg |
11–12 April 2025 | Eurogroup and ECOFIN Council meetings in Poland |