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MIL OSI Translation. Region: Germany / Deutschland –

Source: Destatis Federal Statistical Office

Corona pandemic leads to a financing deficit of 89.8 billion euros

Press release No. 390 from October 7, 2020

WIESBADEN – The editions of the General public budget increased in the 1st half of 2020 by 8.6% compared to the 1st half of 2019 to 797.8 billion euros. Revenues fell for the first time since 2012 compared to the same period in the previous year, by 4.8% to 709.4 billion euros. The information relates to the preliminary results of core– and Extra households the quarterly cash statistics. As the Federal Statistical Office (Destatis) also reports, this results in a cash funding deficit for the first half of 2020 – in contrast to the financial statistics – of 89.8 billion euros.

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After a financing surplus of 10.9 billion euros had been realized in the first half of 2019, the financial effects of the corona pandemic made themselves felt in the budgets of the federal government, states, municipalities and community associations as well as social security in the first half of 2020. The general public budget last recorded a funding deficit for the first half of the year in 2015.

Financing deficit in the first half of 2020 at all levels of the general public budget

Federal expenditure in the first half of 2020 rose by 15.9% to a total of 228.6 billion euros compared to the first half of 2019, while income fell by 6.2% to 184.7 billion euros. This results in a funding deficit for the federal government of 43.8 billion euros compared to a deficit of 0.2 billion euros in the same period of the previous year.

Although there was a slight increase in income in the federal states (+ 0.4% to 212.6 billion euros), the increase in expenditure (+ 15.1% to 229.7 billion euros) led to a financing deficit of 18, 5 billion euros in the first half of 2020. In the first half of 2019, a financing surplus of 12.1 billion euros was achieved.

In the case of municipalities and municipal associations, expenditure rose by 6.2% to 137.1 billion euros and revenues fell by 1.1% to 127.4 billion euros. This results in a financing deficit of 9.7 billion euros for the municipalities and municipal associations in the first half of 2020. In the corresponding period of the previous year, the financing deficit was 0.3 billion euros.

In the first half of 2020, social security showed a funding deficit of 17.7 billion euros compared to a deficit of 0.7 billion euros in the same period of the previous year. Compared to the same period in the previous year, their expenses increased by 8.0% to 362.6 billion euros, and their income by 2.9% to 344.9 billion euros.

Falling tax revenues are responsible for falling income

The decline in income for the general public budget is mainly due to the lower income from taxes and parafiscal charges. Compared to the same period of the previous year, these fell by 5.2% to 623.2 billion euros in the first half of 2020.

Allocations and grants drive expenses

Benchmarks1 of the total public budget in the 1st half of 2020 and 1st half of 2019 in billions of euros
Expenses / Income
A total of
including:
Federation
countries
Municipalities / municipal associations
Social insurance
2020 preliminary results. Deviations in the sums due to rounding. Expenditures and receipts from the federal, state, municipal and social security sectors overlap. Example: The federal government makes expenditure to the federal states, which pass the funds on to the municipalities, which ultimately spend them – here the same euro appears three times in expenditure and twice in income. The Total column has been adjusted for such double counts, so the following columns cannot be added to the total value. Including the balance of the budgetary charges. The financial balance of the General public budget – in the definition of the financial statistics – is not identical with the financial balance of the state of the national accounts.
Adjusted expenses2
2020
797.8
228.6
229.7
137.1
362.6
2019
734.3
197.2
199.6
129.1
335.7
Adjusted revenue2
2020
709.4
184.7
212.6
127.4
344.9
2019
745.2
196.9
211.7
128.8
335.0
Financial balance3
2020
-89.8
-43.8
-18.5
-9.7
-17.7
2019
10.9
-0.2
12.1
-0.3
-0.7

Deviations from the financial balance of the national accounts in the first half of 2020 (see Press release 324/20 from August 25, 2020) are in methodological differences justified.

Further results for the general public budget for 2019 will be published in the Technical series 14, series 2 “Quarterly cash results of the general public budget” expected to be published in April 2020.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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