In 2025 the state’s financing deficit reached €119.1 billion, according to preliminary figures from the Federal Statistical Office (Destatis). This represents a rise of €3.9 billion on the €115.3 billion recorded in 2024. When measured as a share of gross domestic product (at current prices), the deficit ratio in 2025 remained at 2.7 percent, the same level as the previous year.
The data are presented following the European System of National Accounts (ESG) 2010 and provide the basis for monitoring the fiscal position of EU member states under the Stability and Growth Pact. They differ from the public sector budget balance reported under financial statistics.
Of the total deficit, €79.6 billion – about two‑thirds – came from the federal government in 2025. The federal deficit grew by €18.6 billion to €60.9 billion, whereas municipal deficits increased by €7.1 billion to €28.1 billion (from €21.0 billion in 2024). In contrast, state deficits were cut by more than half to €9.8 billion from €21.6 billion, and the social‑insurance deficit fell sharply to €1.7 billion from €11.8 billion. All four state subsectors still operated at a deficit, as in the previous year.
Total state revenues, measured according to the national accounts, stood at €2,140.2 billion in 2025 – an increase of €115.8 billion or 5.7 percent. The primary driver was a rise in social contributions, which grew by 8.9 percent.
Current tax receipts rose 3.5 percent to €1,031.5 billion. Value‑added tax revenue increased 4.0 percent, while income and wealth taxes gained 3.4 percent. Higher wealth‑incentive taxes, linked to an uptick in inheritance, also boosted overall receipts. Conversely, interest income fell 18.0 percent compared with the previous year.
State expenditure climbed 5.6 percent (to €2,259.3 billion), a rise that outpaced the growth in revenues.
Expenditure on interest payments increased 8.1 percent. Monetary social benefits – such as pensions, nursing care, and unemployment benefits – rose 5.6 percent, driven largely by higher retirement payments and supplemental care and unemployment subsidies. In‑kind social benefits grew 7.3 percent, mainly due to expanded spending on hospital services, pharmaceuticals, and care.
Gross investment rose 10.3 percent, reflecting new outlays from earmarked funds for infrastructure and climate‑neutrality initiatives, as well as growing defence spending.