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Record high: State subsidies increase to 31 billion euros

2019-11-02T08:37:52.046Z


According to media reports, federal subsidies will rise to a record high in the coming year. One of the biggest cost blocks: the Baukindergeld.



E-cars, construction costs, building renovation: The Federal Government expects because of upgraded and new state support measures with a drastic increase in their expenses. This is clear from the new subsidy report by Federal Finance Minister Olaf Scholz (SPD). From the report quote the "Handelsblatt" and the "Bild" newspaper. The Cabinet wants to approve the new report next Wednesday.

"The subsidy volume of federal grants and tax credits will rise from € 21.8 billion in 2017 to € 31.4 billion in 2020," says the paper. "A total of 29 new grants were introduced," says the Handelsblatt newspaper.

As a reason for the strong increase, the federal government's subsidy report refers above all to the climate package. "The subsidy policy of the Federal Government is increasingly characterized by climate and environmental policy, especially in the field of direct funding through financial assistance from the federal government," says the paper. In terms of grants, around 58 per cent of the volume would be accounted for by climate and environment-friendly measures. Examples are the energetic renovation of buildings and the promotion of electromobility. In addition to climate protection, further funding priorities would lie in the areas of mobility, digitization and housing construction.

Strong increase in grants

The subsidy report, for example, calls Baukindergeld one of the biggest new financial aid. The Baukindergeld "subsidies for the construction industry from 1.9 billion euros in 2017 to an estimated 3.9 billion euros for the year 2020 more than doubled," says the paper from the Federal Ministry of Finance.

Overall, the subsidies are divided according to the report

  • in 93 different grants (such as the Baukindergeld and the hard coal promotion)
  • and 105 tax breaks (for example, for shift surcharges or hotel nights).

The increase in subsidies is mainly due to an increase in grants - from € 6.3 billion in 2017 to € 14.4 billion in 2020. Federal tax credits increased from € 15.6 billion in the same period to 16 , 9 billion euros.

Source: spiegel

All business articles on 2019-11-02

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