The German federal government’s financial deficit has increased by 15 billion euros to 118.8 billion euros in the year 2024, according to preliminary calculations by the Federal Statistical Office (Destatis). This represents a 2.8 percent deficit-to-GDP ratio, up from 2.5 percent in the previous year.
The federal government’s financial deficit accounted for around half of the total state deficit, at 62.3 billion euros, a decrease of 30.5 billion euros from the previous year. In contrast, the deficits of the states and municipalities increased significantly: the states’ deficit tripled to 27.3 billion euros and the municipalities’ deficit rose by 7.6 billion euros to 18.6 billion euros. The social security system reported a deficit of 10.6 billion euros, a reversal from the 9.0 billion euro surplus in the previous year, marking the first time all four sectors of the state have reported a deficit since 2009.
The state’s total revenue, excluding the national accounts, reached 2.012.9 billion euros, exceeding the 2 billion euro mark for the first time. This represents a 4.8 percent increase from the previous year.
Tax revenues increased by 3.5 percent, with a 2.4 percent rise in value-added tax and a 3.6 percent increase in income tax. Social insurance contributions rose by 6.5 percent and the state’s interest income increased by 13.9 percent, partly due to higher revenues from the truck toll following the introduction of the CO2 surcharge in December 2023.
The state’s total expenditures, excluding the national accounts, rose by 5.3 percent to 2.131.6 billion euros, outpacing the growth in revenue.
Interest expenses increased by 24.2 percent and monetary social benefits rose by 7.0 percent, mainly due to higher expenses for pensions and social assistance. Subsidies, on the other hand, decreased by 35.6 percent, as the energy price relief measures ended in late 2023.