These reduced expenditures in 2021 were offset to some extent by grants totalling €16.0bn to the special fund for reconstruction aid (Aufbauhilfe 2021), which was established in response to the severe flooding that occurred in July 2021. Furthermore, a €6.1bn grant that was allocated to the Länder in 2020 to compensate local authorities for shortfalls in trade tax revenue was not repeated in 2021. In addition, pandemic-related compensation payments under section 21 of the Hospital Financing Act ( Krankenhausfinanzierungsgesetz) are about €4.0bn lower so far this year than in 2020.
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In 2021, €2.5bn has been allocated to the fund so far. The most important ones are as follows: As part of the government stimulus package that was adopted in response to the pandemic, a €27.6bn grant was paid into the Energy and Climate Fund in November 2020. This decline was influenced by a number of factors, which to some extent offset each other. Ongoing grants to public administrations fell by 24.0% (about €17.4bn) on the year.
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These grants also include €3.0bn in disbursements to the health fund’s liquidity reserves for a programme to future-proof hospitals, which was established this year this is the full amount that was budgeted for this purpose. This includes a year-on-year increase of about €13.5bn in disbursements to the health fund to cover pandemic-related costs. Grants to social security funds were up by 15.1% (about €19.8bn) on the year. About €35.7bn of the funds earmarked for this purpose were disbursed by 30 November 2021. Most of this increase consisted of assistance to businesses affected by the fallout from the coronavirus pandemic. Subsidies to businesses climbed by 53.3% (about €23.0bn) on the year. Ongoing grants to social security funds and subsidies to businesses made up most of this rise. A breakdown by economic category shows that higher spending in the January–November period was driven mainly by consumption spending, which was up by 8.9% (about €32.2bn). Federal expenditure in the first 11 months of 2021 totalled approximately €444.9bn, up by 11.9% (about €47.3bn) on the year. Measures to counteract the Covid-19 pandemic and its effects are having a significant impact on budget execution in 2021. To the top Return to top to the top Expenditure In 2020, Deutsche Bahn paid the Federation a dividend of €650m. Furthermore, the figures for the period reflect the absence of dividend payments by Deutsche Bahn. Fines collected by the Federal Cartel Office were also down by about €0.8bn on the year. This was mainly due to the fact that the Federation’s share (€2.5bn) of the Bundesbank’s net profits was not remitted. The category of “other revenue” was down by 17.0% (about €4.1bn) on the year in the January–November period. Tax revenue growth was also tempered by the trend in payments to the EU (GNI-based own resources and VAT-based own resources), which were up by about €7.4bn on the year. Revenue from the solidarity surcharge was down by 42.7% (about €6.7bn), largely due to the abolition this year of the solidarity surcharge for approximately 90% of wages tax and income tax payers. Revenue from income tax and corporation tax was up by 13.6% (about €15.4bn), while the yield from value added taxes was up by 16.3% (about €14.2bn) on the year. Tax receipts (taking into account transfers of own resources to the EU) in the first 11 months of the year were up by 7.3% (about €17.4bn) on the year. Source: Federal Ministry of Financeįederal revenue for the period from January to November 2021 totalled approximately €277.3bn, up by 5.0% (about €13.3bn) on the year, but still about €28.9bn below the figure for the same period in 2019. ⁵ Negative values denote accumulation of reserves. Excluding revenue from internal offsetting. ⁴ With the exception of revenue from loans on the credit market, withdrawals from reserves, revenue from cash surpluses and seigniorage. Excluding expenditure from internal offsetting. ³ With the exception of expenditure on the repayment of debt incurred on the credit market, allocations to reserves and expenditure made to cover a cash deficit.
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¹ Including government draft of a second supplementary federal budget for 2021, which was approved by the Federal Cabinet on 13 December 2021. Federal budget trends in November 2021 Table: Trends in the federal budgetĪny discrepancies in totals are due to rounding.