Public budget deficit declines as spending drops

29th March 2005, Comments 0 comments

29 March 2005, WIESBADEN - Germany's public sector budget deficit in 2004 came to EUR 65.1 billion, a decline of EUR 10.4 billion from the year before thanks to a slight drop in spending, officials reported on Tuesday.

29 March 2005

WIESBADEN - Germany's public sector budget deficit in 2004 came to EUR 65.1 billion, a decline of EUR 10.4 billion from the year before thanks to a slight drop in spending, officials reported on Tuesday.

The Federal Statistics Office in Wiesbaden said public sector revenues, EUR 924.9 billion, were unchanged from 2003 levels.

But public expenditures dropped to EUR 990.1 billion, down 1.1 percent compared with EUR 1.001 trillion in 2003, the office said, to reduce the budget deficit.

The public sector budget consists of the federal and state budgets, special federal funds, municipalities budgets and social security funds.

The office figures showed that the federal budget deficit was up slightly, at EUR 39.8 billion, compared with EUR 39.2 billion in 2003. The higher deficit came while revenues decreased 3.2 percent year-on-year, while spending fell 2.5 percent.

The federal government carried out new net borrowing of EUR 39.5 billion in 2004 to help cover the gap, compared with EUR 38.6 billion borrowing the year before, the office figures showed.

Germany's 16 states performed better on balance. Their revenues increased 1.7 percent to EUR 230.8 billion, while they cut spending by 1 percent to EUR 255.9 billion. This helped to reduce their deficit by EUR 6.4 billion, to EUR 25.2 billion.

DPA

Subject: German news

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