Press release No. 057 of 25 February 2020
WIESBADEN – According to updated results of the Federal Statistical Office (Destatis), general government budgets achieved a surplus in 2019 for the eighth time in a row. It amounted to 49.8 billion euros, which was less than the record surplus in 2018 when general government had achieved a surplus of 62.4 billion euros. When measured as a percentage of the gross domestic product at current prices (3,435.8 billion euros), this is a +1.4% surplus ratio of general government (2018: +1.9%). The budgets of central government, state government, local government and social security funds continued to benefit especially from a favourable employment trend. The figures are based on the definitions of the European System of Accounts (ESA) 2010. They are the basis for monitoring the budget situation in the EU Member States in accordance with the Stability and Growth Pact (Maastricht criteria).
Expenditure rose more strongly than revenue
Net lending in 2019 is the difference between revenue (1,608.6 billion euros) and expenditure (1,558.8 billion euros) of general government. The surplus was smaller than in the previous year as general government expenditure (+4.6%) rose more strongly than revenue (+3.6%). All government levels contributed to the positive balance. Central government recorded the highest surplus (20.1 billion euros). State government achieved a surplus of 13.6 billion euros, social security funds of 9.9 billion euros and local government of 6.2 billion euros.
Good labour market situation led to marked increase in social contributions and wage tax
On the revenue side, especially social contributions rose above average by 4.4% to 597.8 billion euros. The continuing high employment was a major factor contributing to this development and to the further increase in wage tax payments (+4.1%). Total tax revenue of general government was up by 3.1% to 825.8 billion euros. The development on the expenditure side was characterised by above-average rises in gross capital formation (+8.8%) and intermediate consumption (+6.1%). The marked increase in gross capital formation is mainly due to higher government gross fixed capital formation in construction. Due to the continuing very low interest rates and lower debt, interest payments decreased again (-13.2%).
