BERLIN (MNI) – German federal net new borrowing this year will
likely be less than E30 billion, thus well below the E48.4 billion
projected in the 2011 budget, a senior German Finance Ministry official
said Sunday.
“In all likelihood, federal net new borrowing will fall below E30
billion this year,” the ministry source said. “That’s not bad.”
Moreover, in its final draft for the 2012 federal budget bill, to
be adopted by the cabinet on Wednesday, the ministry has lowered the
planned federal net new borrowing for next year to E27.2 billion from
the E31.5 billion, the official said.
In its medium-term fiscal plan, also to be adopted by the cabinet
on Wednesday, the ministry tables for 2013 federal net new borrowing of
E24.9 billion, for 2014 of E18.7 billion and for 2015 of E14.7 billion,
the source said.
Federal expenditures are projected at E306.0 billion in 2012,
E311.5 billion in 2013, E309.9 billion in 2014 and E315.0 billion in
2015, the official said.
Federal tax revenue is projected at E247.4 billion in 2012, E256.4
billion in 2013, E265.8 billion in 2014 and E275.7 billion in 2015, the
source said.
Other revenue is seen at E31.5 billion in 2012, E30.2 billion in
2013, E25.4 billion in 2014 and E24.6 billion in 2015, the official
said. This includes, for example, proceeds from highway tolls,
distributed dividends and the Bundesbank profit.
The budget projections are based on the expectation of GDP growth
of 2.3% this year, 1.8% next year and 1.6% per year for 2013-2015, the
source pointed out.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
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