High tax revenues: Bund makes billions surplus

Despite a weaker economy, the federal budget will again show a significant surplus in 2019, according to information from SPIEGEL. According to preliminary calculations, Finance Minister Olaf Scholz (SPD) will have close to ten billion euros more than planned at the end of the year.

That is why Scholz can leave the so-called refugee reserve, from which he wanted to withdraw six billion euros for current expenditures, untouched again this year. The remaining four billion euros in surplus will flow into the reserve, which will thus grow to around 40 billion euros.

The reason for the good budgetary situation is the more than planned growth in tax receipts and lower federal interest payments. Currently, the federal government has to pay no more interest on new debts - sometimes he even gets money from the investors.

The Germans consume diligently

Nevertheless, the good financial position is reasonably astonishing, as economic growth has slowed considerably in recent months. The federal government expects this year only with an increase of 0.5 percent in gross domestic product. When the budget for 2019 was passed last autumn, growth expectations were around three times higher.

The fact that taxes are rising above budget despite the economic downturn has two causes. Firstly, consumer spending continues to grow - bringing steadily rising tax revenues, above all from VAT.

Second, rising tax revenues are not least a consequence of the progression in income tax. Because the salaries increased again this year. With each additional earned euro, taxpayers have to pay a growing share to the tax office. That's the consequence of the progressive tax rate. Therefore, the tax revenue grow disproportionately.

This topic comes from the new SPIEGEL magazine - available at the kiosk from Saturday morning and every Friday at SPIEGEL + and in the digital magazine edition.

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