Press General government recorded surplus of 45.3 billion euros in the first six months of 2019 Surplus ratio at 2.7% of the gross domestic product

Press release No. 322 of 27 August 2019

WIESBADEN – Net lending of German general government amounted to roughly 45.3 billion euros in the first half of 2019 according to provisional results of the Federal Statistical Office (Destatis). Measured as a percentage of the gross domestic product at current prices (1,686.8 billion euros), this is a surplus ratio of 2.7%. 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). However, only limited conclusions can be drawn for the annual result from the results for the first six months.

Net lending in the first half of 2019 is the difference between revenue (791.8 billion euros) and expenditure (746.5 billion euros) of general government. All government levels contributed to the positive balance. Central government recorded the highest level of net lending (17.7 billion euros). State government achieved a surplus of 12.7 billion euros, social security funds of 7.7 billion euros and local government of 7.1 billion euros.

Marked increase of social contributions, decrease of interest revenue

The revenue of general government rose by 24.6 billion euros (+3.2%) in the first half of 2019 on the same period a year earlier. The most important source of government income is taxes, which amounted to 415.4 billion euros, thus accounting for a good half of total revenue. The increase in tax revenue (+2.8%) was rather moderate in the first six months of 2019. However, the dynamic development of social contributions (+4.4%) continued as a result of the positive employment trends. In contrast, there was a decline of government revenue from interest and dividends received (-1.4%), the main reason being a marked decrease in interest revenue (-7.6%).

Above-average rise in government investment expenditure

Government expenditure rose markedly (+4.3%) in the first six months of 2019. Higher growth rates were recorded for local government (+5.5%) and the social security funds (+4.8%). In particular the increase in government investment expenditure was above average in the first half of the year (+10.6%). Due to the continuing very low interest rates and the lower debt level, government interest payments declined again (-10.8%) and had a dampening effect on expenditure.

Information on the major revision of national accounts

In addition to the calculation of first data for the first six months of 2019, all national accounts calculations were thoroughly reviewed and revised as of this date as part of the 2019 major revision and were converted to the reference year of 2015. To avoid breaks in the time series, the results for Germany were recalculated back to 1991 so that modified results may appear in the whole time series from 1991 onwards.

There was a significant change with regard to net lending/net borrowing of general government, in particular for the year 2000. The government's proceeds from auctioning mobile communications frequencies, which amounted to 50.8 billion euros, are no longer shown as revenue in the year 2000 but are recorded proportionately as lease income over the whole contractually agreed period of frequency use until 2020. In the first half of 2019, this lease income amounted to 1.1 billion euros.