- Revised Statistics Show Enhanced Revenue Per Capita for the Nation
Due to the revised population figures from the 2022 census, published in the summer, Rheinland-Pfalz is projected to bring in extra million-euro earnings past 2024. As per the response from Finance Minister Doris Ahnen (SPD) to a Green faction leader Pia Schellhammer's parliamentary query, the state anticipates an extra 50 million euros this year. This figure progressively increases, reaching approximately 60 million euros by 2028. In the midst of this, Rheinland-Pfalz is governed by a traffic light coalition consisting of SPD, FDP, and Greens.
The increased funds stem from alterations in population statistics across the federal states, which significantly impacts how VAT revenue is allocated among the states. The Munich-based ifo Institute had calculated in July that Rheinland-Pfalz would receive an additional 50 million euros this year, a conclusion also supported by the state government.
The census results revealed a nationwide decrease in Germany's population by around 1.4 million people. Consequently, Rheinland-Pfalz also experienced a population decrease, yet at a lower rate than other federal states, resulting in a relatively larger population share for the state. As per the census reference date of May 15, 2022, approximately 4.09 million people resided in Rheinland-Pfalz, representing a decrease of 1.4% compared to predictions based on population forecasts.
The traffic light government in Rheinland-Pfalz is scheduled to present its budget plans for the years 2025 and 2026 in Mainz on Tuesday. According to Finance Minister Ahnen, the expected additional VAT revenue has already been accounted for in these plans.
The revised population figures, leading to changes in population statistics, have significantly influenced the allocation of VAT revenue among the states, resulting in an extra VAT revenue for Rheinland-Pfalz's population. Due to the decrease in Germany's population but a lower rate in Rheinland-Pfalz, the state has benefited from a relatively larger population share, contributing to the projected increase in earnings past 2024.
