State funding: Federal government doubles subsidies


Status: 08/13/2021 11:39 a.m.

According to the subsidy report, financial aid and tax breaks from the federal government will rise to around 47 billion euros next year – money mainly for climate and environmental protection. The sum has almost doubled within three years.

State funding, especially for climate and environmental protection, has led to a sharp rise in federal subsidies. These have almost doubled within three years, according to information from ARD capital studios emerges from the subsidy report of the Federal Ministry of Finance. The report should be the subject of the Cabinet in the coming week.

The volume of state financial aid and tax breaks will therefore increase from 24.6 billion euros in 2019 to an expected 47.2 billion euros in the coming year. The report also takes into account the already approved budget for 2022.

Tax money for insulation of buildings

Direct financial aid rose particularly sharply – from 8.3 to 27.7 billion euros. According to the subsidy report, two thirds of this goes into climate and environmentally friendly measures – such as the “Federal Funding for Efficient Buildings” (BEG). In 2022 alone, the state will provide more than 2.7 billion euros to reduce emissions in the building sector. The money goes into replacing heating systems or insulating buildings, for example. The federal government promotes this through investment grants and low-interest loans.

The federal government also supports electromobility with subsidies. The expansion of the charging stations for e-cars is to be subsidized with almost 1.7 billion euros in the coming year. Another 2.1 billion euros are earmarked for the increased purchase premium for electric cars. The government is providing around 414 million euros for the switch to e-buses and other commercial vehicles with climate-friendly drives.

Promotion of new broadband lines

According to the subsidy report, another focus of government funding is digitization. The federal government is expected to support broadband expansion in the coming year with EUR 876.4 million. In 2019 it was 265.3 million euros.

In addition to the financial aid, there are other tax breaks. They rose in the reporting period from 16.3 to 19.6 billion euros. The government is obliged to submit an overview of federal subsidies to the Bundestag and Bundesrat every two years.

Federal government: doubling of subsidies in three years

Uli Hauck, ARD Berlin, August 13, 2021 9:28 am



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