12.01.2022 – 08:00
Federal Office of Statistics
Total public expenditure rose in the first three quarters of 2021 compared to the same period in the previous year by 6.1% to 1,306.6 billion euros, and income by 6.7% to 1,146.2 billion euros. The information relates to the preliminary results of the core and extra budgets of the quarterly cash statistics. As the Federal Statistical Office (Destatis) also reports, this results in a cash funding deficit – as defined by the financial statistics – of 160.4 billion euros for the period from January up to and including September 2021. In the first three quarters of 2020 there was a funding deficit in the general public budget 157.1 billion euros, while in the same period in 2019 a financing surplus of 18.8 billion euros was achieved.
Allocations and grants as a result of the corona pandemic are driving expenses
The increased expenditure of the general public budget can mainly be explained by the higher allocations and grants as a result of the corona pandemic. The federal government and its extra budgets alone paid around 56.2 billion euros (+22.5%) more allocations, grants and debt servicing aid in the first three quarters of 2021 than in the same period of the previous year. This includes emergency aid to companies as well as payments to support hospitals.
Tax revenues exceed the pre-crisis level
As a result of the economic recovery that was recorded in the 2nd and 3rd quarters of 2021, revenues of the general public budget rose after they had previously decreased significantly due to the Corona crisis. The main reason for the increase was income from taxes and tax-like levies, which increased by 7.6% to 1,017.0 billion euros in the first three quarters of 2021 compared to the same period in the previous year. They were thus above the level of the corresponding period in the pre-crisis year 2019.
Income from taxes and tax-like levies increased by 5.7% for the federal government and by 11.3% for the federal states compared to the same period in the previous year. The decisive factors in each case were above all higher income from income and corporation tax as well as sales tax. In the case of the municipalities and municipal associations, the increase was 14.1%, mainly due to the higher trade tax income. The income from social security contributions, which count as tax-like levies, was 4.3% above the previous year’s level.
The tax revenues of the federal states, the municipalities and municipal associations as well as social security were thus above the pre-crisis level. Federal tax revenues have not yet reached the pre-crisis level.
Financing deficit again at all levels of the general public budget, but only that of the federal government increased
Federal spending from January to September 2021 amounted to 408.0 billion euros and was thus 10.3% (+38.0 billion euros) above that – mainly due to the higher allocations and grants as a result of the corona pandemic Previous year’s level. Income also increased again (+ 3.5% to 286.2 billion euros), but were still 11.0 billion euros below the level for the same period in 2019.
The funding deficit for the federal government was 121.8 billion euros compared to a deficit of 93.5 billion euros in the same period of the previous year. In the first three quarters of 2019, federal expenditure and income were almost balanced.
In the federal states, income (+ 10.9%) grew faster than expenditure (+ 6.2%). However, with revenues of 362.3 billion euros and expenditures of 365.5 billion euros, there was also a financing deficit of 3.3 billion euros – albeit lower than in the same period last year, when the deficit was 17.4 billion euros. In the first three quarters of 2019, a financing surplus of 17.3 billion euros was realized.
In the case of municipalities and municipal associations, expenditure rose by 3.2% to 216.3 billion euros and income by 8.0% to 210.3 billion euros. This results in a funding deficit of 6.0 billion euros compared to 14.9 billion euros in the same period of the previous year 2020 and 0.4 billion euros in 2019.
In the first three quarters of 2021, social security showed a funding deficit of 29.4 billion euros compared to deficits of 31.4 billion euros and 1.7 billion euros in the comparable periods of 2020 and 2019, respectively. Their expenditures increased by 5.3% to 587.7 billion euros compared to the same period of the previous year, their income by 6.0% to 558.3 billion euros.
Deviations from the budget balance of the national accounts are due to methodological differences.
Further results for the general public budget in the first three quarters of 2021 will be published in Fachserie 14, series 2 “Quarterly cash results of the general public budget”, expected in January 2022.
The complete press release as well as further information and functions are available on the website of the Federal Statistical Office at https://www.destatis.de/pressemitteilungen to find.
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Original content by: Federal Statistical Office, transmitted by news aktuell