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State finances also in 2021 in the Corona dent
The Federal Ministry of Finance in Berlin. Photo: Michael Kappeler/dpa
© dpa-infocom GmbH
In 2021, overall public budget expenditure rose to EUR 1,762.4 billion compared to the previous year.
Public finances were also shaped by the consequences of the corona pandemic in 2021.
As reported by the Federal Statistical Office, total public budget expenditure rose by 5.0 percent year-on-year to EUR 1,762.4 billion. Revenue rose slightly faster than expenditure – by 9.4 percent to 1629.3 billion euros.
This resulted in a cash financing deficit of 133.2 billion euros. In 2020, the financing deficit was 189.2 billion euros, while in the pre-crisis year 2019 a surplus of 45.2 billion euros was realized.
“The financing deficit of the overall public budget in 2021 is largely explained by the federal government’s financing deficit, which has increased slightly again in connection with the costs of the corona pandemic,” reported the office in Wiesbaden. The information relates to provisional results of the core and extra budgets of the quarterly cash statistics.
The increased expenditure is mainly due to allocations and grants, such as emergency aid to companies or payments to support hospitals. The allocations also include special funds, for example to support the victims of the flood disaster.