Inhalt
- Federal budget trends in January 2023
- Tax revenue in January 2023
- Borrowing and guarantees
- Calendar
Federal budget trends in January 2023
Expenditure (€bn)² | 480.7 | 476.3 | 52.5 | |
---|---|---|---|---|
Year-on-year change in % (year to date) | +15.6 | |||
Revenue (€bn)³ | 364.7 | 389.9 | 24.3 | |
Year-on-year change in % (year to date) | +6.4 | |||
Tax revenue (€bn) | 337.2 | 358.1 | 22.5 | |
Year-on-year change in % (year to date) | +6.4 | |||
Balance of pass-through funds (€bn) | 0.0 | 0.0 | 0.0 | |
Fiscal balance (€bn) | -116.0 | -86.4 | -28.2: | |
Financing/use of surplus: | 116.0 | 86.4 | 28.2 | |
Cash resources (€bn) | - | - | 230.8 | |
Seigniorage (€bn) | 0.1 | 0.2 | 0.0 | |
Movements in reserves⁴ (€bn) | 0.5 | 40.5 | 0.0 | |
Net borrowing⁵ (€bn) | 115.4 | 45.6 | -202.6 | |
Any discrepancies in totals are due to rounding. | ||||
Actual 2022 | 2023 target | Actual January2023¹ |
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Revenue
Federal revenue in January 2023 totalled approximately €24.3bn, up by 6.4% (about €1.5bn) on the year. Tax receipts increased by 6.4% (roughly €1.4bn) year-on-year. For further information about tax revenues, please refer to the article “Tax revenues in January 2023” [in German only] in the current issue of the monthly report.
The category of “other income” recorded a year-on-year gain of 6.1% (about €0.1bn) in January 2023.
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Expenditure
Federal expenditure in January 2023 totalled approximately €52.5bn, up by 15.6% (about €7.1bn) on the year. A breakdown by economic category shows that the rise in expenditure was driven mainly by investment spending, which was 198.2% (about €6.6bn) higher than in January 2022. This enormous increase is mainly due to a special factor: a €6.3bn loan that was granted to the IMF’s Resilience and Sustainability Trust in January 2023 was recorded as an investment item, as required under budget law. After adjusting for this effect, investment spending was up by €0.3bn, or 7.8%. Fixed asset investment was about 7.3% higher than in the same month last year.
Consumption spending remained roughly at the same level as last year, increasingly by only 1.3% (€0.5bn). There were several contrasting trends overall. Operating expenditure rose significantly (by 37.9% or about €0.7bn). As a result of the general increase in interest rates, interest expenditure also saw a substantial increase (of 47.8% or about €1.6bn). By contrast, ongoing grants and subsidies declined by 6.3%, or about €2bn, mainly due to the fact that fewer financial resources had to be made available for combating and mitigating the negative impact of the COVID-19 pandemic. For example, federal payments to the health fund to cover pandemic-related costs declined by about €2.6bn, to €0.3bn. In January 2023, there were no pandemic-related compensation payments under section 21 of the Hospital Financing Act (Krankenhausfinanzierungsgesetz), which totalled €1.4bn in January 2022. Pandemic-related assistance for businesses stood at approximately €60m, down by about €0.4bn.
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Fiscal balance
The federal budget recorded a deficit of about €28.2bn in January 2023.
Revenue and expenditure are subject to strong fluctuations over the course of the fiscal year and thus have an uneven effect on cash funds in individual months. Net borrowing also tends to fluctuate considerably over the course of the year. This means that the fiscal balance at any given point in the year and the corresponding net borrowing figures are not reliable indicators of the end-of-year figures for the fiscal balance and net borrowing.
Trends in federal expenditure by function
General public services | 108,785 | 22.6 | 108,723 | 22.8 | 8,215 | 9,226 | +12.3 | |
---|---|---|---|---|---|---|---|---|
Economic cooperation and development | 13,615 | 2.8 | 12,005 | 2.5 | 1,181 | 1,361 | +15.3 | |
Defence | 51,608 | 10.7 | 52,027 | 10.9 | 3,827 | 4,586 | +19.8 | |
Government, central administration | 22,069 | 4.6 | 22,471 | 4.7 | 1,896 | 2,001 | +5.5 | |
Revenue administration | 6,150 | 1.3 | 6,766 | 1.4 | 467 | 471 | +0.8 | |
Education, science, research, cultural affairs | 28,009 | 5.8 | 33,483 | 7.0 | 942 | 1,593 | +69.1 | |
Support for school and university students and training programme participants | 4,127 | 0.9 | 5,646 | 1.2 | 406 | 527 | +29.9 | |
Science, research and development outside of higher education institutions | 16,638 | 3.5 | 20,273 | 4.3 | 271 | 680 | +150.9 | |
Social security, family affairs and youth, labour market policy | 253,717 | 52.8 | 214,183 | 45.0 | 28,182 | 27,607 | -2.0 | |
Social security funds including unemployment insurance | 136,757 | 28.5 | 136,461 | 28.7 | 19,368 | 20,041 | +3.5 | |
of which: | ||||||||
General pension insurance | 99,373 | 20.7 | 103,082 | 21.6 | 15,027 | 15,706 | +4.5 | |
Health insurance | 15,867 | 3.3 | 18,975 | 4.0 | 1,225 | 1,452 | +18.5 | |
Labour market policy | 42,625 | 8.9 | 44,351 | 9.3 | 3,077 | 3,682 | +19.7 | |
of which: | ||||||||
Citizens’ minimum income under Book II of the Social Code | 22,276 | 4.6 | 23,760 | 5.0 | 1,884 | 2,384 | +26.6 | |
Government housing and heating allowances under BookII of the Social Code | 9,729 | 2.0 | 10,400 | 2.2 | 559 | 662 | +18.5 | |
Family assistance, welfare services, etc. | 11,711 | 2.4 | 14,984 | 3.1 | 962 | 1,027 | +6.8 | |
Social benefits under BookXII of the Social Code and the Asylum Seekers Benefits Act (Asylbewerberleistungsgesetz) | 8,690 | 1.8 | 9,075 | 1.9 | 907 | 986 | +8.7 | |
Other social affairs | 48,857 | 10.2 | 4,116 | 0.9 | 3,372 | 1,202 | -64.4 | |
Health, environment, sport, recreation | 18,489 | 3.8 | 9,437 | 2.0 | 2,105 | 448 | -78.7 | |
Housing, urban development, regional planning and local community services | 2,664 | 0.6 | 3,909 | 0.8 | 90 | 139 | +55.3 | |
Housing, home ownership savings premium | 1,589 | 0.3 | 2,540 | 0.5 | 88 | 131 | +49.1 | |
Food, agriculture and forestry | 1,701 | 0.4 | 2,134 | 0.4 | 76 | 46 | -39.6 | |
Energy and water management, trade and services | 8,795 | 1.8 | 20,979 | 4.4 | 780 | 6,741 | +763.9 | |
Regional support measures | 1,970 | 0.4 | 3,364 | 0.7 | 26 | 7 | -72.3 | |
Monetary and insurance system | 2,227 | 0.5 | 6,899 | 1.4 | 400 | 6,500 | X | |
Other trade and services | 514 | 0.1 | 5,954 | 1.3 | 14 | 38 | +178.6 | |
Transport and communication | 28,125 | 5.9 | 28,008 | 5.9 | 1,428 | 1,500 | +5.0 | |
Roads | 9,243 | 1.9 | 9,459 | 2.0 | 386 | 410 | +6.3 | |
Railways and public transport | 11,852 | 2.5 | 10,875 | 2.3 | 606 | 519 | -14.4 | |
Financial management | 30,403 | 6.3 | 55,435 | 11.6 | 3,585 | 5,201 | +45.1 | |
Real property and capital assets, special funds and financial grants | 13,948 | 2.9 | 16,925 | 3.6 | 214 | 225 | +5.1 | |
Interest expenditure and borrowing-related expenditure | 15,293 | 3.2 | 39,864 | 8.4 | 3,295 | 4,871 | +47.9 | |
Total expenditure¹ | 480,688 | 100.0 | 476,291 | 100.0 | 45,403 | 52,501 | +15.6 | |
¹ With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. | ||||||||
Actual 2022 | 2023 target | Actual | Year-on-year change | |||||
January2022 | January2023 | |||||||
in€m | sharein% | in€m | sharein% | in €m | in % |
Trends in federal expenditure by economic category
Consumption expenditure | 434,477 | 90.4 | 411,688 | 86.4 | 42,093 | 42,632 | +1.3 |
---|---|---|---|---|---|---|---|
Human resources expenditure | 37,843 | 7.9 | 41,669 | 8.7 | 4,031 | 4,162 | +3.2 |
Salary payments | 28,193 | 5.9 | 31,775 | 6.7 | 2,912 | 2,983 | +2.4 |
Pensions | 9,650 | 2.0 | 9,894 | 2.1 | 1,119 | 1,179 | +5.4 |
Operating expenditure | 45,075 | 9.4 | 49,147 | 10.3 | 1,877 | 2,588 | +37.9 |
Maintenance of immovable property | 1,154 | 0.2 | 1,082 | 0.2 | 54 | 57 | +5.6 |
Military procurement | 18,981 | 3.9 | 18,477 | 3.9 | 616 | 1,072 | +74.0 |
Other | 24,939 | 5.2 | 29,588 | 6.2 | 1,207 | 1,459 | +20.9 |
Interest expenditure | 15,264 | 3.2 | 39,841 | 8.4 | 3,294 | 4,870 | +47.8 |
Ongoing grants and subsidies | 335,039 | 69.7 | 279,324 | 58.6 | 32,595 | 30,551 | -6.3 |
to public administrations | 47,360 | 9.9 | 36,875 | 7.7 | 3,392 | 2,256 | -33.5 |
to other areas | 287,679 | 59.8 | 242,448 | 50.9 | 29,204 | 28,295 | -3.1 |
of which: | |||||||
Companies | 48,308 | 10.0 | 37,812 | 7.9 | 2,935 | 2,351 | -19.9 |
Pensions, benefits, etc. | 34,538 | 7.2 | 38,950 | 8.2 | 2,962 | 3,509 | +18.5 |
Social security funds | 176,328 | 36.7 | 143,728 | 30.2 | 21,483 | 20,694 | -3.7 |
Other asset transfers | 1,256 | 0.3 | 1,707 | 0.4 | 295 | 461 | +56.3 |
Investment expenditure | 46,211 | 9.6 | 71,475 | 15.0 | 3,310 | 9,869 | +198.2 |
Financial assistance | 39,664 | 8.3 | 63,378 | 13.3 | 3,131 | 9,677 | +209.1 |
Grants and subsidies | 34,001 | 7.1 | 41,360 | 8.7 | 1,539 | 2,220 | +44.2 |
Loans, guarantees | 3,560 | 0.7 | 20,641 | 4.3 | 1,592 | 7,457 | +368.4 |
Acquisition of holdings; capital contributions | 2,103 | 0.4 | 1,377 | 0.3 | X | ||
Fixed asset investment | 6,546 | 1.4 | 8,097 | 1.7 | 179 | 192 | +7.3 |
Construction projects | 4,053 | 0.8 | 5,311 | 1.1 | 78 | 62 | -20.5 |
Acquisition of movable assets | 2,303 | 0.5 | 2,631 | 0.6 | 103 | 122 | +18.4 |
Acquisition of real property | 190 | 0.0 | 154 | 0.0 | -2 | 8 | -500.0 |
General reduction/increase in expenditure | 0.0 | -6,872 | -1.4 | X | |||
Total expenditure¹ | 480,688 | 100.0 | 476,291 | 100.0 | 45,403 | 52,501 | +15.6 |
¹ With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit. Excluding expenditure from internal offsetting. | |||||||
Actual 2022 | 2023 target | Actual | Year-on-year change | ||||
January2022 | January2023 | ||||||
in€m | sharein% | in€m | sharein% | in €m | in % |
Trends in federal revenue
Taxes¹ | 337,168 | 92.5 | 358,126 | 91.8 | 21,177 | 22,534 | +6.4 |
---|---|---|---|---|---|---|---|
Federal share of joint taxes: | 307,216 | 84.2 | 319,508 | 81.9 | 20,612 | 21,014 | +2.0 |
Income tax and corporation tax | 171,830 | 47.1 | 175,337 | 45.0 | 9,168 | 8,586 | -6.3 |
of which: | |||||||
Wages tax | 96,564 | 26.5 | 109,799 | 28.2 | 6,280 | 6,252 | -0.4 |
Assessed income tax | 32,900 | 9.0 | 24,170 | 6.2 | 856 | 846 | -1.2 |
Non-assessed tax on earnings | 16,313 | 4.5 | 16,175 | 4.1 | 873 | 704 | -19.4 |
Final withholding tax on interest and capital gains | 2,886 | 0.8 | 3,168 | 0.8 | 408 | 354 | -13.2 |
Corporation tax | 23,167 | 6.4 | 22,025 | 5.6 | 751 | 430 | -42.7 |
Value added taxes | 132,813 | 36.4 | 141,668 | 36.3 | 11,363 | 12,273 | +8.0 |
Trade tax apportionment paid to Federation and Länder | 2,573 | 0.7 | 2,503 | 0.6 | 81 | 155 | +91.4 |
Energy duty | 33,667 | 9.2 | 36,965 | 9.5 | 391 | 283 | -27.6 |
Tobacco duty | 14,229 | 3.9 | 15,630 | 4.0 | 538 | 461 | -14.3 |
Solidarity surcharge | 11,978 | 3.3 | 12,500 | 3.2 | 666 | 678 | +1.8 |
Insurance tax | 15,672 | 4.3 | 16,270 | 4.2 | 818 | 829 | +1.3 |
Electricity duty | 6,830 | 1.9 | 6,800 | 1.7 | 629 | 611 | -2.9 |
Motor vehicle tax | 9,499 | 2.6 | 9,470 | 2.4 | 883 | 872 | -1.2 |
Alcohol duty including alcopops duty | 2,194 | 0.6 | 2,172 | 0.6 | 178 | 165 | -7.3 |
Coffee duty | 1,063 | 0.3 | 1,060 | 0.3 | 102 | 97 | -4.9 |
Aviation tax | 1,140 | 0.3 | 1,535 | 0.4 | 62 | 94 | +51.6 |
Sparkling wine duty and intermediate products duty | 379 | 0.1 | 390 | 0.1 | 26 | 38 | +46.2 |
Other taxes accruing to the Federation | 2 | 0.0 | 2 | 0.0 | X | ||
Deductions | |||||||
Consolidation assistance for the Länder | 800 | X | 800 | X | X | ||
Supplementary grants to Länder | 10,675 | X | 11,080 | X | X | ||
EU own resources (GNI-based) | 25,574 | X | 27,070 | X | 2,388 | 1,160 | -51.4 |
EU own resources (VAT-based) | 4,838 | X | 5,100 | X | 395 | 425 | +7.6 |
EU own resources (plastics) | 1,377 | X | 1,380 | X | 115 | X | |
Grants to Länder for public transport | 14,444 | X | 9,754 | X | 944 | 908 | -3.8 |
Grants to Länder for motor vehicle tax and HGV toll | 8,992 | X | 8,992 | X | X | ||
Other revenue | 27,485 | 7.5 | 31,795 | 8.2 | 1,663 | 1,764 | +6.1 |
Revenue from economic activity | 5,562 | 1.5 | 4,453 | 1.1 | 34 | 27 | -20.6 |
Interest revenue | 578 | 0.2 | 1,258 | 0.3 | 66 | 117 | +77.3 |
Loan repayments, holdings, privatisation proceeds | 1,413 | 0.4 | 2,135 | 0.5 | 64 | 56 | -12.5 |
Total revenue² | 364,653 | 100.0 | 389,921 | 100.0 | 22,840 | 24,299 | +6.4 |
¹ Any discrepancies in relation to the table “2023 trends in tax revenue (excluding local authority taxes)” are due to the methodology used. | |||||||
Actual 2022 | 2023 target | Actual | Year-on-year change | ||||
January2022 | January2023 | ||||||
in€m | sharein% | in€m | sharein% | in €m | in % |
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Tax revenue in January 2023
2023 trends in tax revenue (excluding local authority taxes)
Joint taxes | ||||
---|---|---|---|---|
Wages tax² | 20,778 | +4.2 | 258,350 | +13.7 |
Assessed income tax | 1,996 | -1.1 | 79,350 | +2.5 |
Non-assessed taxes on earnings | 1,550 | -15.6 | 32,350 | -0.8 |
Final withholding tax on interest and capital gains | 804 | -13.2 | 7,200 | +9.8 |
Corporation tax | 860 | -42.8 | 44,050 | -4.9 |
Value added taxes | 24,808 | +5.5 | 289,950 | +1.8 |
Total joint taxes | 50,796 | +2.1 | 711,250 | +5.4 |
Trade tax apportionments paid to Federation and Länder | ||||
Trade tax apportionments | 348 | +28.8 | 6,041 | -4.8 |
Increased trade tax apportionments | -94.6 | |||
Total trade tax apportionments | 348 | +28.7 | 6,041 | -4.8 |
Taxes accruing to the Federation | ||||
Energy duty | 283 | -27.5 | 36,965 | +9.8 |
Tobacco duty | 461 | -14.4 | 15,630 | +9.8 |
Alcohol duty | 165 | -7.2 | 2,170 | -1.0 |
Insurance tax | 829 | +1.4 | 16,270 | +3.8 |
Electricity duty | 611 | -2.7 | 6,800 | -0.4 |
Motor vehicle tax | 872 | -1.2 | 9,470 | -0.3 |
Aviation tax | 94 | +51.2 | 1,570 | +37.7 |
Solidarity surcharge | 678 | +1.8 | 12,500 | +4.4 |
Other taxes accruing to the Federation | 135 | +5.2 | 1,454 | +0.6 |
Total taxes accruing to the Federation | 4,129 | -3.8 | 102,829 | +6.4 |
Taxes accruing to the Länder | ||||
Inheritance tax | 764 | -15.2 | 9,500 | +3.0 |
Real property transfer tax | 1,205 | -24.1 | 16,900 | -1.3 |
Betting and lottery tax | 238 | -8.1 | 2,623 | +2.1 |
Beer duty | 45 | -4.7 | 591 | -1.5 |
Other taxes accruing to the Länder | 28 | +2.4 | 600 | +3.5 |
Total taxes accruing to the Länder | 2,280 | -19.2 | 30,214 | +0.4 |
EU own resources | ||||
Customs duties | 481 | +13.9 | 6,850 | +0.3 |
VAT-based own resources | 425 | +7.6 | 5,100 | +5.4 |
GNI-based own resources | 1,160 | -48.9 | 27,070 | +5.9 |
Plastics own resources | 115 | -0.8 | 1,380 | +0.2 |
Total EU own resources | 2,181 | -31.9 | 40,400 | +4.6 |
Federation³ | 23,527 | +7.3 | 369,707 | +9.6 |
Länder³ | 28,118 | -0.8 | 387,370 | +0.7 |
EU | 2,181 | -31.9 | 40,400 | +4.6 |
Local authorities’ share of income tax and value added tax | 4,208 | +3.3 | 59,706 | +9.4 |
Total tax revenue (excluding local authority taxes) | 58,034 | +0.8 | 857,184 | +5.2 |
¹ Methodology: Total cash income from the various taxes is recorded and allocated to the various government levels as stipulated by law. Tax amounts actually received in the current month by individual government levels may differ from the target amounts for technical reasons. | ||||
2023 | January | Year-on-year | 2023 estimates⁴ | Year-on-year |
in €m | in % | in €m | in % |
Total tax revenue (excluding local authority taxes) was up by 0.8% on the year in January 2023, thanks to a 2.1% increase in revenue from joint taxes. Receipts from the two taxes that generate the most revenue – wages tax and value added taxes – recorded substantial gains. However, there were declines in revenue from the remaining joint taxes, most significantly corporation tax, non-assessed taxes on earnings and final withholding tax on interest and capital gains. Revenue from taxes accruing solely to the Federation fell by 3.8%, with energy duty, tobacco duty and electricity duty all recording appreciable declines. Revenue from taxes accruing to the Länder was down by 19.2% on the year, primarily due to downwards trends in receipts from real property transfer tax and inheritance tax, the two highest-yielding Länder taxes.
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EU own resources
Transfers of own resources to the EU, including customs duties, were 31.9% lower in January 2023 than in the same month of 2022. In general, monthly requisitions are based on the annual EU budget that is in force for the respective year and are distributed relatively evenly across individual months. However, there can sometimes be substantial year-on-year fluctuations in individual months.
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Distribution among the Federation, Länder and local authorities
The Federation’s tax receipts (after accounting for supplementary federal grants that, under the fiscal equalisation system, are paid from the Federation’s revenues to Länder with below-average capacity) recorded a year-on-year rise of 7.3% in January 2023. The Federation’s take from joint taxes grew by 3.2%. This was higher than the increase in overall revenue from joint taxes, which amounted to 2.1%. The discrepancy is due to the fact that the Federation’s receipts from its share of VAT revenue increased by 7.9%, even though overall VAT revenue posted a smaller increase of 5.5%.
Under section 1 (1) of the Fiscal Equalisation Act (Finanzausgleichsgesetz), the Federation receives 52.81% of overall VAT revenue. This share is subsequently reduced by annual fixed amounts that the Federation allocates to the Länder and local authorities under vertical financial equalisation arrangements. The disproportionate increase in the Federation’s take from its share of VAT revenue in January 2023 can be attributed to the effects of these fixed amounts:
- Because the fixed amounts were approximately €0.2bn lower than in January 2022, the Federation’s overall receipts from VAT increased substantially. In 2022, the Länder received additional funds under the Act to Improve Quality and Participation in Child Daycare (KiTa-Qualitäts- und -Teilhabeverbesserungsgesetz) as well as a post-pandemic catch-up programme for children and young people for 2021 and 2022.
- It should be noted that even when the fixed amounts remain unchanged, the Federation’s VAT receipts rise when VAT revenue increases, since the volumes of the fixed amounts are not linked to revenue trends.
Other trends in January 2023: Revenue from taxes accruing solely to the Federation was down by 3.8% on the year. Supplementary federal grants to the Länder increased by 11.5%. Federal subsidies to the Länder for public transport were slightly down on the year. Federal transfers of own resources to the EU were lower than in 2022 (see above).
Länder tax receipts posted a small year-on-year decline of 0.8% in January 2023. Due to the mechanism for distributing VAT revenue described above, the Länder posted lower rates of growth for VAT revenue (up by 3.1%) and revenue from joint taxes (up by 0.8%) than the Federation. In addition, the yield from taxes that accrue exclusively to the Länder posted a significant decline of 19.2%. Länder receipts from federal subsidies for public transport were down by 3.8% on the year. However, the Länder saw an increase in receipts from supplementary federal grants (up by 11.5%).
Local authorities’ take from their share of joint taxes was 3.3% higher than in the same period last year, while their receipts from value added taxes were up by 3.8% on the year.
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Joint taxes
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Wages tax
Gross revenue from wages tax was up by 6.0% on the year in January 2023. Among other things, this reflects the labour market’s continued robust performance in December 2022, despite the overall economic burdens (see the article on economic trends [in German only] in the current issue of the monthly report). Child benefit payments – which are financed from wages tax receipts – rose by 15.3% on the year in January, primarily due to the increase in child benefit that came into effect on 1 January 2023. On balance, cash receipts from wages tax were up by 4.2% on the year.
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Corporation tax
Gross corporation tax receipts in January are strongly influenced by the revenue administration’s assessment activities and were down sharply on the year by 41.2%. Research and investment allowance payments, which are financed from corporation tax receipts, totalled about €24.4m and thus had only a marginal impact on the yield from corporation tax. Cash receipts from corporation tax were down by 42.8% on the year in January 2023.
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Assessed income tax
Gross revenue from assessed income tax recorded a year-on-year increase of 7.7% in January 2023. Employee refunds (which are subtracted from the gross figure) were up by 43.9% on the year. As with corporation tax, trends in gross tax revenue from assessed income tax and employee refunds are driven by assessment activities. Investment allowance payments, research allowance payments and owner-occupied homes premiums, which are insignificant in terms of amount, are also subtracted from the gross figure. On balance, cash receipts from assessed income tax were down by 1.1% on the year in January 2023.
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Non-assessed taxes on earnings
Gross receipts from non-assessed taxes on earnings were 15.8% lower than in January last year. Refunds by the Federal Central Tax Office, which are financed from gross revenue, totalled about €7m (down by 47.2% on the year). Overall, cash receipts from non-assessed taxes on earnings fell by 15.6% on the year in January.
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Final withholding tax on interest and capital gains
In January 2023, revenue from final withholding tax on interest and capital gains was 13.2% lower than in the same month last year.
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Value added taxes
Revenue from value added taxes was up by 5.5% on the year in January 2023. Receipts from (domestic) VAT recorded a slight increase of 0.3%, while receipts from import VAT rose by 19.5% in year-on-year terms. Revenue from import VAT saw a marked increase, in line with the considerable year-on-year rise in the value of imported goods. Because import VAT can be deducted as input tax from (domestic) VAT, rising import VAT receipts tend to result in weaker revenue trends for (domestic) VAT. In addition, the reduction in the VAT rate on gas and district heating (from 1 October 2022 until 31 March 2024) is likely to have had a noticeable dampening effect on receipts from (domestic) VAT.
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Taxes accruing to the Federation
In January 2023, revenue from taxes accruing solely to the Federation was down by 3.8% compared with the same month last year. Energy duty receipts recorded a sharp year-on-year decline of 27.5%, while revenue from tobacco duty fell by 14.4% on the year. Receipts from the solidarity surcharge rose by 1.8% on the year, thanks to growth in revenue from the taxes that make up its tax base. Revenue gains were also posted for insurance tax (up by 1.4%) and aviation tax (up by 51.2% – this surge can be attributed to the low 2021 baseline, which was still affected by the pandemic). Year-on-year revenue declines were recorded for motor vehicle tax (down by 1.2%), electricity duty (down by 2.7%), alcohol duty (down by 7.2%) and coffee duty (down by 5.1%). Trends in revenue from other taxes had only a minor impact on overall receipts from federal taxes.
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Taxes accruing to the Länder
Receipts from taxes accruing solely to the Länder were down by 19.2% on the year in January 2023, mainly as a result of declines in revenues from real property transfer tax (down by 24.1%) and inheritance tax (down by 15.2%). In the case of real property transfer tax, the negative revenue trend probably reflects the weakening of the real estate market as a result of the sharp rise in construction prices and less favourable financing conditions. Year-on-year revenue declines were recorded for betting and lottery tax (down by 8.1%) and beer duty (down by 4.7%), while receipts from fire protection tax were 2.7% higher than in the same month of 2022.
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Borrowing and guarantees
Borrowing trends for the Federation in January 2023
Total | 1,551,721 | 39,076 | -59,032 | 1,531,765 | -19,956 | -5,105 |
---|---|---|---|---|---|---|
broken down by purpose | ||||||
Federal budget | 1,370,503 | 22,731 | -59,032 | 1,334,202 | -36,301 | -5,108 |
Special funds with their own borrowing authorisation (excluding loan financing) | 71,491 | 13,988 | - | 85,479 | 13,988 | - |
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9(1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz)) | 22,927 | -3 | - | 22,924 | -3 | - |
Investment and Redemption Fund | 16,279 | - | - | 16,279 | - | - |
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section22 of the Stabilisation Fund Act) | 2,060 | -1 | - | 2,059 | -1 | - |
Economic Stabilisation Fund (loans to mitigate the impact of the energy crisis pursuant to section 26a of the Stabilisation Fund Act) | 30,225 | 13,500 | - | 43,725 | 13,500 | - |
Special fund for the Bundeswehr | - | 492 | - | 492 | 492 | - |
Loan financing | ||||||
Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act) | 109,727 | 2,357 | - | 112,085 | 2,357 | 2 |
Economic Stabilisation Fund (loans for KfW pursuant to section23 of the Stabilisation Fund Act) | 59,400 | 600 | - | 60,000 | 600 | 2 |
Any discrepancies in totals are due to rounding. | ||||||
Source: Federal Ministry of Finance | ||||||
Debt level | Borrowing | Debtrepayment | Debt level | Changeindebtlevel | Interest | |
31December2022 | January | January | 31January2023 | January | January |
Borrowing trends for the Federation (budget and special funds, excluding loan financing) in January 2023
Total | 1,441,993 | 36,719 | -59,032 | 1,419,680 | -22,313 | -5,108 |
---|---|---|---|---|---|---|
broken down by purpose | ||||||
Federal budget | 1,370,503 | 22,731 | -59,032 | 1,334,202 | -36,301 | -5,108 |
Financial Market Stabilisation Fund (loans for expenses pursuant to section 9(1) of the Stabilisation Fund Act (Stabilisierungsfondsgesetz)) | 22,927 | -3 | - | 22,924 | -3 | - |
Investment and Redemption Fund | 16,279 | - | - | 16,279 | - | - |
Economic Stabilisation Fund (loans for recapitalisation measures pursuant to section22 of the Stabilisation Fund Act) | 2,060 | -1 | - | 2,059 | -1 | - |
Economic Stabilisation Fund (loans to mitigate the impact of the energy crisis pursuant to section 26a of the Stabilisation Fund Act, excluding the granting of loans) | 30,225 | 13,500 | - | 43,725 | 13,500 | - |
broken down by debt type | ||||||
Conventional federal securities | 1,286,836 | 34,671 | -23,150 | 1,298,357 | 11,521 | -4,973 |
30-year federal bonds | 308,993 | 3,035 | - | 312,027 | 3,035 | -4,548 |
10-year federal bonds | 608,356 | 9,551 | - | 617,907 | 9,551 | -466 |
Federal notes | 159,784 | 5,110 | - | 164,894 | 5,110 | -41 |
Federal Treasury notes | 90,141 | 5,490 | - | 95,630 | 5,490 | -26 |
Treasury discount papers issued by the Federation | 119,562 | 11,487 | -23,150 | 107,899 | -11,664 | 109 |
Inflation-linked federal securities | 72,357 | 468 | - | 72,825 | 468 | -12 |
Green federal securities | 36,411 | 1,580 | - | 37,991 | 1,580 | -110 |
Securitised loans | - | - | - | - | - | - |
Other loans and ordinary debts | 5,360 | - | - | 5,360 | - | -3 |
Additional information | ||||||
Liabilities from the indexing of inflation-linked federal securities | 15,844 | X | X | 15,899 | 55 | X |
Reserves in accordance with the Final Payment Financing Act (Schlusszahlungsfinanzierungsgesetz) | 9,124 | X | X | 9,215 | 92 | X |
Liabilities from indexing include the amount by which the original issuance price has increased due to inflation between the start date and the specified reference date. | ||||||
In contrast, the total given for reserves to make provision for final payments on inflation-linked federal securities pursuant to the Finance Payment Financing Act includes only the increases that are noted on coupon payment dates (15 April of every year) (section 4 (1) of the Final Payment Financing Act) and on reopening dates for inflation-linked securities (section 4 (2) of the Final Payment Financing Act). | ||||||
Any discrepancies in totals are due to rounding. | ||||||
Source: Federal Ministry of Finance | ||||||
Debt level | Borrowing | Debtrepayment | Debt level | Changeindebtlevel | Interest | |
31December2022 | January | January | 31January2023 | January | January |
Authorised amount | Amountallocatedasof | Amountallocatedasof | |
---|---|---|---|
in €bn | |||
Export credit guarantees | 150.0 | 119.1 | 128.0 |
Loans to foreign debtors, foreign direct investment, EIB loans | 60.0 | 39.7 | 35.1 |
Financial cooperation projects | 37.0 | 31.5 | 29.0 |
Food stockpiling | 0.7 | 0.0 | 0.0 |
Domestic guarantees | 550.0 | 346.6 | 273.0 |
International financial institutions | 90.0 | 75.5 | 75.5 |
Treuhandanstalt successor organisations | 1.0 | 1.0 | 1.0 |
Interest compensation guarantees | 15.0 | 15.0 | 15.0 |
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Calendar
March 2023 issue | February 2023 | 21 March 2023 |
April 2023 issue | March 2023 | 21 April 2023 |
May 2023 issue | April 2023 | 19 May 2023 |
June 2023 issue | May 2023 | 22 June 2023 |
July 2023 issue | June 2023 | 20 July 2023 |
August 2023 issue | July 2023 | 24 August 2023 |
September 2023 issue | August 2023 | 21 September 2023 |
October 2023 issue | September 2023 | 20 October 2023 |
November 2023 issue | October 2023 | 21 November 2023 |
December 2023 issue | November 2023 | 21 December 2023 |
¹ In accordance with the IMF’s Special Data Dissemination Standard Plus (SDDS Plus); see http://dsbb.imf.org | ||
Source:Federal Ministry of Finance | ||
Monthly report | Reporting period | Publication date |
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23–26February2023 | Meeting of G20 finance ministers and central bank governors in Bangalore, India |
---|---|
13–14 March 2023 | Eurogroup and ECOFIN Council meetings in Brussels, Belgium |
11–16 April 2023 | Spring meetings of the IMF and World Bank in Washington, D.C., USA |
12–13 April 2023 | Meeting of G20 finance ministers and central bank governors on the sidelines of the IMF/World Bank spring meetings in Washington, D.C., USA |
28–29 April 2023 | Eurogroup and informal ECOFIN meetings in Stockholm, Sweden |
11–13 May 2023 | Meeting of G7 finance ministers and central bank governors in Niigata City, Japan |
15–16 May 2023 | Eurogroup and ECOFIN Council meetings in Brussels, Belgium |
15–16 June 2023 | Eurogroup and ECOFIN Council meetings in Luxembourg |