BERLIN (MNI) – German total public sector tax revenue this year
will amount to E555.0 billion, some E17.6 billion higher than previously
estimated, according to figures from the government’s tax estimate
commission released Thursday by the Finance Ministry.
Tax revenue for the federal government alone is projected at E237.3
billion, some E11.9 billion above previous estimates. In its 2011 budget
law, the government assumed federal tax revenue for this year of E229.2
billion.
Beyond 2011, the tax commission now forecasts total public tax
revenue of E584.6 billion in 2012 (up E21.4 billion), E608.7 billion in
2013 (up E47.3 billion) and E630.5 billion in 2014 (up E49.0 billion).
Federal tax revenue is projected at E247.2 billion in 2012 (up
E12.5), E255.3 billion in 2013 (up E20.5 billion) and E264.9 billion in
2014 (up E21.5 billion).
For 2015, the tax commission’s first forecast is for total public
tax revenue to rise by 3.5% to E652.3 billion and for federal tax
revenue to increase by 3.6% to E274.4 billion.
In its medium-term fiscal plan for 2012-2015 the government had
already assumed higher federal tax revenue than in the previous tax
estimate, the ministry pointed out. The new tax estimates project only
E5.4 billion more federal tax revenue in 2012 than forecast in the
fiscal plan, E4.5 billion more in 2013, E5.5 billion more in 2014 and
E6.6 billion more in 2015.
The ministry also noted that the new tax revenue forecasts are
based only on budget measures agreed so far and do not include fiscal
burdens which are still in the pipeline.
The tax commission’s new estimates assume real GDP growth of 2.6%
in 2011, 1.8% in 2012 and 1.6% each year from 2013 to 2015.
Finance Minister Wolfgang Schaeuble said at a press conference that
all additional revenue will be used to lower the budget deficit.
Federal net new borrowing this year will likely be below E40
billion, Schaeuble said. In its 2011 budget the government had projected
borrowing of E48.4 billion.
The government will continue its budget consolidation course to
counter domestic inflation pressures, the minister said: “It is crucial
to conduct a fiscal policy which prevents inflation.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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