State deficit in 2023 at 4.5 percent of economic output

Federal Finance Minister Christian Lindner

According to “Spiegel”, new borrowing will be higher than expected in the coming year.

(Photo: dpa)

Berlin According to “Spiegel”, Germany’s government deficit will be significantly higher in 2023 at 4.5 percent of gross domestic product (GDP) than previously thought. Compared to the original planning, it will more than double, the magazine reported on Friday and referred to Calculation documents of the Federal Ministry of Finance for the Stability Council.

The federal and state coordinating committee for state finances will meet next week. The reason for the increase is primarily aid measures such as gas and electricity price brakes. The Ministry of Finance could not immediately be reached for comment.

In 2024, the deficit should then drop to two percent and be 1.5 percent in the two following years. The decline comes about because the state aid is limited. The deficit is entirely at the expense of the federal government. States, municipalities and social security funds have balanced budgets or make surpluses.

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