The German state has never had such a high level of debt: In the first quarter, state debt rose by 1.6 percent to more than 2,406 billion euros. Above all, the fight against the energy crisis has an impact.
At the end of the first quarter of this year, the debts in the general public budget in Germany reached an all-time high. This was announced by the Federal Statistical Office. The main reasons for the higher debt are therefore above all increased expenditure in the fight against the energy crisis.
Total amounted to preliminary debt level from federal, state, municipal and municipal associations as well as social security including all extra budgets on the key date of March 31, 2023 to around 2406.6 billion euros. Which means an increase of 1.6 percent compared to the end of 2022, i.e. around 38.9 billion euros.
The federal government’s debt alone increased by 2.4 percent to around 1,659.6 billion euros in the first three months of this year. The Federal Statistical Office said that the increase in debt is primarily a consequence of the “increased need for financing as a result of the current energy crisis in connection with Russia’s war of aggression against Ukraine”.
billions in debt for gas price brake
Around 200 billion euros have been reserved for the so-called gas price brake and for financial support from energy suppliers. The increase in debt is therefore mainly due to extra budgets created for this purpose, so-called special assets. The Energy Economic Stabilization Fund was founded in November. The debt associated with this special fund alone rose by 73.3 percent from January to March – by 22.2 billion euros to a total of 52.4 billion euros, as the Reuters news agency reported.
The debt of the Corona Economic Stabilization Fund set up during the pandemic rose by 1.2 percent to 53.0 billion euros. And for the first time, the extra budget for the Bundeswehr also showed liabilities of 802 million euros.
biggest debt reduction in Bavaria
A look at the federal states shows a slight decrease in debt by 0.5 percent to a total of 604.1 billion euros. According to the Federal Statistical Office, Bavaria had the largest decline in debt, falling by 16.8 percent to around 32.45 billion euros. Followed by Mecklenburg-Western Pomerania, whose debt fell by 8.2 percent to around 9.3 billion euros, and Baden-Württemberg with a drop of 5.0 percent to around 52.9 billion euros.
In Saxony, on the other hand, debt increased by 8.6 percent to a total of around 8.6 billion euros in the first quarter. The Federal Statistical Office for Brandenburg writes the second highest increase in debt with an increase of 7.2 percent to 21.3 billion euros. North Rhine-Westphalia follows with an increase of 2.7 percent to around 236.18 billion euros.
Contrary to the development in the federal states, the indebtedness of the municipalities and municipal associations increased. Here there was growth of 1.9 percent to 142.8 billion euros. Social security reported liabilities of 36.1 million euros, a decrease of 0.8 percent.