Germany\u2019s consolidated public budget closed 2025 with its largest deficit since the crisis year of 2022. This was announced on April 5 by the Federal Statistical Office in Wiesbaden, according to DW.<\/p>\n
The budget deficit reached \u20ac127.3 billion, \u20ac22.9 billion more than a year earlier. Total revenues amounted to approximately \u20ac2.081 trillion, while expenditures totaled around \u20ac2.208 trillion.<\/p>\n
The increase in the deficit was primarily driven by the federal government, whose shortfall rose by \u20ac34.5 billion to \u20ac85.4 billion. This was largely due to reliance on debt financing through special funds for the Bundeswehr, infrastructure, and climate protection, all fully financed by borrowing.<\/p>\n
Municipalities recorded a record deficit of \u20ac31.9 billion, with expenditures rising by 5.6% while revenues increased by only 4.1%.<\/p>\n
At the same time, the federal states and the social security system managed to reduce their deficits. The states\u2019 deficit decreased by \u20ac9.5 billion to \u20ac8.7 billion, with three-quarters of this amount attributed to the city-states of Berlin, Hamburg, and Bremen, while five states, including Bavaria and Hesse, posted budget surpluses.<\/p>\n
The deficit of the social security system fell by \u20ac9.2 billion to \u20ac1.3 billion, driven by a 9% increase in insurance contributions, including higher additional contributions to the health insurance fund.<\/p>\n
The rise in federal spending was largely due to increased subsidies and loans to social funds. The federal government allocated \u20ac5.3 billion to Deutsche Bahn to boost its equity and provided it with a \u20ac3 billion loan.<\/p>\n
A key factor behind higher expenditures was military procurement, which increased by 23.4% to \u20ac39 billion.<\/p>\n
A change in accounting practices for government securities helped reduce interest expenses compared to 2024.<\/p>\n","protected":false},"featured_media":151432,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151431","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151432"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151431"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151431"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151431"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}