Energy price brake expired
State deficit decreases slightly in the first half of the year
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The comparison to the previous year makes it clear that the German state deficit is slightly declining, although the federal government, the federal states and municipalities largely compensate for their income and expenses. The relevant reason is the expired energy price brake.
The German state deficit has decreased slightly. According to preliminary calculations by the Federal Statistical Office, it was 38.1 billion euros in the first half of the year, as the authority in Wiesbaden announced. That was 1.3 billion euros less than in the same period last year. According to the statisticians, the expired energy price brakes dampened the increase in government spending. Measured by the gross domestic product (GDP), this results in a deficit rate of 1.8 percent for the first half of the year.
At 24.6 billion euros, the federal government continued to have the largest share in the overall state deficit in the first half of the year, the statisticians continued. However, the federal financing deficit fell well by 17.9 billion euros. In contrast, that of the federal states and communities rose vigorously to 7.2 and 6.4 billion euros. Social security recorded a financing surplus of 0.2 billion euros, significantly less than a year earlier (9.6 billion euros).
State income increases more than expenditure
The state's financing deficit in the first half of the year results from the difference between income (973.5 billion euros) and expenses (1011.6 billion euros). The income rose by 4.7 percent in the first half of the year last year – a little more than the expenses.
According to the statistics, the energy price brakes expired at the end of 2023 contributed significantly to the decline in subsidies by almost 40 percent in the previous year. Despite the weak economy, the state's tax revenue rose by 3.6 percent in the first half of the year at the same period last year.
