The federal government spent significantly more money on economic aid this year. The main reason is the energy crisis. However, spending on education and research is lagging behind.
According to a study, federal financial aid has more than doubled this year due to the energy crisis. They are likely to add up to around 208 billion euros, as the Kiel Institute for the World Economy (IfW) announced today when it presented its Subsidy report announced. Last year it was 98 billion euros, in 2021 around 77 billion euros.
“In view of the extent and significance of the energy crisis for social coexistence in the country, an increase in financial aid is to be expected and understandable,” said IfW subsidy expert Claus-Friedric Laaser. “But this enormous scale goes beyond what was previously known.” Federal financial aid has now become the most important item.
Electricity and gas price brakes are the largest expenditure item
Of every euro that the federal government spends, more than 30 cents are used for subsidies. Social spending is almost 30 cents less. Only just under 20 cents would flow into state services such as infrastructure or research and education.
According to the researchers, the largest item of the planned financial aid is the expenditure for the electricity and gas price cap from the economic stabilization fund with 43 and a good 40 billion euros. This is followed by aid for the energy-efficient renovation of buildings with almost 17 billion euros and the subsidy for statutory health insurance with 14.5 billion euros.
Transport also receives a lot of funding
The subsidy goals have clearly shifted towards environmental policy and energy – for example to promote electromobility and hydrogen technology. Most of the financial aid, almost 35 billion euros, is now being spent on this, not including money from the economic stabilization fund.
The transport sector comes in second place with a good 26 billion euros. The biggest beneficiary here is Deutsche Bahn. A total of 12.6 billion euros will flow to them.
More in 2022 too Tax relief
When it comes to tax relief, the researchers were only able to access complete data for 2022. At a good 75 billion euros, they were around ten percent above the previous year’s level. The largest items are the sales tax exemption for social security institutions, hospitals and other areas of the healthcare system (20.4 billion euros), the travel allowance (6.2 billion), the inheritance tax allowance and inheritance tax reduction (5.1 billion) and the fuel discount (3.1 billion). ).
The reduced sales tax rates for cultural services as well as for restaurants and catering services cost around three billion euros each.
Heating USA Subsidy race at
The US Inflation Reduction Act had also recently increased the willingness to provide government aid. US President Joe Biden is trying to lure foreign companies to the United States with a lot of money and cheap energy.
Germany and the EU are therefore trying to counteract this, for example with billions in support for companies or their establishment in Germany and the EU. The US chip manufacturer Intel recently announced that it would open a production site in Magdeburg – in return for almost ten billion euros in subsidies. There is also criticism of the high subsidies among economists.