State finances - Ifo: Census improves cash register in Rhineland-Palatinate to some extent
Corrected population numbers in the recently published population census 2022, according to the Ifo Institute, are quite pleasing for Rhineland-Palatinate. Based on the population size, it will receive twelve euros more per inhabitant, as calculated by Munich economists. This amounts to around 50 million euros in total.
Special beneficiaries are Bremen and Saarland: They will receive an additional 242 euros per inhabitant in Bremen, and 192 euros more in Saarland, because their population numbers have been adjusted upward. The biggest loser is therefore Berlin, with 129 euros less per inhabitant, followed by Mecklenburg-Vorpommern with a loss of 107 euros and Hamburg with a loss of 103 euros.
The census 2022 showed that there are approximately 1.4 million fewer people living in Germany than previously assumed. Since population numbers are a factor in the calculation of the federal financial equalization, the states will have to make higher deductions, the further their population size has been adjusted downward.
According to the Ifo Institute, the state with the largest absolute gains will be the most populous federal state, North Rhine-Westphalia, with additional revenues of approximately 584 million euros per year - this would be only 32 euros more per inhabitant.
- The population census 2022 in Germany revealed that Bremen's population size has been adjusted higher, which is beneficial for the city-state's finances.
- In contrast to Rhineland-Palatinate, which gained from the corrected population numbers, Mainz, one of its cities, experienced a slight decrease in its estimated population size.
- The Ifo Institute's analysis indicated that Saarland's population census result led to a significant increase in the per capita funding allocated to the region.
- The recent population census showed a decline in Germany's overall population size, affecting the finances of the smaller federal states like Mecklenburg-Vorpommern, which will now receive less funding per inhabitant.
- The German federal states, including Bremen and Saarland, rely on accurate population data from the Population census for their allocation in Country finances.
- The census data also revealed that Rhineland-Palatinate, Münster, and Hamburg are among the most populous federal states in Germany, which plays a role in their funding from federal finances.
- Households in the federal states with adjusted population sizes, such as Bremen and Saarland, should be aware of the potential impact on their regional and Country finances, given the role of population data in their funding allocation.
