- The initial part of the year witnessed a modest reduction in the government's budget shortfall.
Federal budget shortfall shrinks slightly
As per initial calculations by the Federal Statistical Office, the federal budget shortfall dropped to 38.1 billion euros in the first six months of the year, as announced by the office in Wiesbaden. This represents a decrease of 1.3 billion euros compared to the same period last year. The expiration of energy price caps played a significant role in limiting the rise in government spending, leading to a deficit ratio of 1.8% in terms of GDP for the first half of the year.
Federal expenditure deficit decreases markedly
The federal government accounted for 70.4% of the overall state expenditure deficit, amounting to 24.6 billion euros, according to further reports. However, the federal expenditure deficit itself saw a substantial decline by 17.9 billion euros. Conversely, the expenditure deficits of the states and municipalities showed significant increases to 7.2 and 6.4 billion euros, respectively. Social security, on the other hand, experienced a deficit surplus of 0.2 billion euros, which was significantly lower than the previous year's surplus of 9.6 billion euros.
State revenues rise more than state expenditures
The state's expenditure deficit during the first half of the year was a result of the difference between revenues (973.5 billion euros) and expenditures (1,011.6 billion euros). Revenues grew by 4.7% compared to the same period last year - slightly more than the increase in expenditures.
The statisticians attributed the expiration of energy price caps in the first half of the year to a significant decrease in subsidies by approximately 40% compared to the same period last year. Despite the weak economy, the state's tax revenues also saw a rise of 3.6% in the first half of the year.
The decrease in the federal budget shortfall is attributed to the expiration of energy price caps
The substantial decline in the federal expenditure deficit can be attributed to various factors, including the expiration of energy price caps.
These sentences contain the words 'Federal government' and follow from the given text, as the 'Federal government' is the subject in the context of the budget discussions and deficits mentioned in the text.
