State finances - Bundle collects more taxes in the first half-year
The Federal Government collected slightly more Taxes in the first half of 2024 than in the same period in the previous year. The tax revenues amounted to 176.5 billion Euro according to the monthly report of the Finance Ministry - an increase of 4.6%, or 7.8 billion Euro, compared to the first half of 2023. In addition, there were approximately 20 billion Euro in other revenues, including interest income, toll payments, and revenues from the sale of participations.
On the other hand, the Federal Government's expenditures decreased by around four percent primarily due to lower interest payments. However, the Federal Government had to dig deeper into its pockets for social benefits and subsidies to the pension insurance than in the first half of 2023.
According to the report, the Federal Budget had a financing deficit of 23.6 billion Euro at the end of June. Income and expenditures are subject to significant fluctuations throughout a fiscal year, so no conclusion can be drawn for the annual balance based on this.
Moreover, the Federal Government intends to take on additional debt of 11.3 billion Euro through a supplementary budget, which will help offset the increased need for social benefits. This is possible despite the debt brake due to the weak economy.
Berlin, as the capital of Germany, contributes substantially to the Federal Government's tax revenue. Household income tax is one of the main sources of revenue for the Federal Government in Germany. Despite the decrease in expenditures due to lower interest payments, the State Finances still faced a financing deficit of 23.6 billion Euro at the end of June, primarily due to increased social benefits and subsidies.
