German Public Spending and Revenue Show Improvement in 2023

20 euro bill on white textilePhoto by Lukasz Radziejewski
  • The total revenue for 2023 stood at approximately 1.86 trillion euros, marking a 6.4% increase
  • Public Sector expenditures of about 1.95 trillion euros, a rise of 4.1%.

Wiesbaden, Germany — Germany’s Federal Statistical Office Friday reported significant developments in Germany’s public finances for the year 2023: The public sector, encompassing federal, state, and local governments, as well as social security, showed an increase in both spending and revenue compared to 2022.

The total revenue for 2023 stood at approximately 1.86 trillion euros, marking a 6.4% increase over the previous year. On the expenditure side, the public sector saw expenses of about 1.95 trillion euros, a rise of 4.1%. This led to a financing deficit of 91.9 billion euros. Notably, this deficit represents a substantial reduction of 35.4 billion euros compared to 2022 and is the first time since the record deficit in 2020 (189.2 billion euros) that the figure has dropped below 100 billion euros.

The federal government bore the brunt of the deficit, with a shortfall of 87.6 billion euros. For the first time in several years, local governments also experienced a deficit of 6.8 billion euros. In contrast, state governments nearly balanced their budgets, and the social insurance sector posted a modest surplus of 2.7 billion euros.

BySilvia Orfeo

Silvia Orfeo is a Sr. Politics and Economics Reporter at Nobot.News

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