2014 federal budget: no new borrowing was required

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MIL OSI – Source: German Ministry of Finance – in English –

Headline: 2014 federal budget: no new borrowing was required

The Federal Ministry of Finance presented the provisional closing of accounts for the 2014 federal budget in Berlin on 13 January 2015. The 2014 budget planned for €6.5bn of new borrowing. However, the fact that the tax revenue was €2.6bn higher than predicted, coupled with additional administrative revenue of €2.9bn and spending cuts of €1bn, meant that no new borrowing was required in 2014.

According to the provisional data for 2014, the federal government’s structural surplus amounted to 0.28% of GDP. The debt brake requirements were thus once again complied with by a comfortable margin.
Provisional closing of accounts for the 2014 federal budgetDiscrepancies may occur as a result of roundingIn € bn
2014 target
Provisional outcome
Amount above/below target
Expenditure
296.5295.5-1.0Year-on-year change (in %)
-3.7%-4.0%Tax revenue
268.2270.8+2.6Administrative revenue/revenue from coin
21.824.7+2.9Net borrowing
6.50-6.5Federal budget expenditure in 2014 totalled €295.5bn, €1.0bn below projections and the lowest level since 2009. This was partly due to significantly lower interest payments. As originally planned, €4.3bn was made available for the European Stability Mechanism.

Federal tax revenue was €270.8bn, €2.6bn above target and €1.8bn above the amount forecast by the Working Party on Tax Revenue Estimates in November 2014. This was mainly due to lower transfers of own resources to the EU and the positive trend in corporation tax revenue.

Administrative revenue exceeded the projected figure by €2.9bn, primarily as a result of higher assigned EU revenue. In addition, the amount set aside for the proceedings pending at the Federal Fiscal Court regarding the levying of nuclear fuel duty was not required after all.

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2014 fed­er­al bud­get in graph­ics

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