Press release No. 065 of 22 February 2019
WIESBADEN – Net lending of general government amounted to 58.0 billion euros in 2018 according to updated results of the Federal Statistical Office (Destatis). In absolute terms, this was the highest surplus achieved by general government since German reunification. When measured as a percentage of gross domestic product at current prices (3,386.0 billion euros), the surplus ratio of general government was +1.7%. These are data based on the definitions of the European System of Accounts (ESA) 2010; they are used to monitor the budget situation in the EU Member States.
Net lending is calculated as the difference between revenue (1,543.6 billion euros) and expenditure (1,485.5 billion euros) of general government. Compared with the previous year, revenue increased markedly again (+4.7%), that is, more sharply than expenditure (+3.2%). Revenue was higher than expenditure at all levels of general government. In 2018, the highest surplus was achieved by central government (17.9 billion euros), where operations were based on a tentative budget until July 2018, which had a downward effect on expenditure, among other things. Social security funds showed a surplus of 14.9 billion euros at the end of 2018. Local government, too, benefited from a marked increase in revenue, achieving a surplus of 14.0 billion euros in 2018. State government recorded a financial surplus of 11.1 billion euros in 2018.
On the revenue side, large increases were recorded especially for income and net worth tax payments (+5.7%) and the continuing good employment trend led to a sharp increase in social contributions (+4.3%). Government revenue from interest and dividends received grew considerably (+16.1%). The reason was the markedly higher Bundesbank profit. The expenditure side was characterised by above-average increases in expenditure regarding gross fixed capital formation (+7.9%) and compensation of employees (+3.9%). Due to the continuing very low interest rates and lower debt, interest payments decreased again (-8.5%).
