Finances: German state deficit increases to almost 119 billion euros

The German state spent significantly more money than earned last year. According to preliminary calculations by the Federal Statistical Office, the state deficit was EUR 118.8 billion – 15 billion euros more than 2023. In terms of economic output, this results in a deficit rate of 2.8 percent for 2024 after 2.5 percent in the previous year.

Despite the economic crisis, Germany thus adheres to the European debt rule, which allows a maximum budget deficit of 3.0 percent. The German state benefited from growing income, which for the first time exceeded the 2 trillion euros mark in 2024.

Rising tax revenue: BUND can reduce deficit

With 62.3 billion euros, a good half of the 2024 state deficit came up. While he was able to reduce the financial gap by 30.5 billion euros for the previous year with rising tax revenue, the deficit grew significantly from the federal states and municipalities. Social insurance also recorded a deficit of 10.6 billion euros in 2024, after a surplus of 9 billion euros a year earlier. For the first time since 2009, both the federal government, countries, municipalities and social security were in the minus, according to the statisticians.

In view of the economic crisis and pressure to spend more money for defense, a debate about relaxing the debt brake has flared up. However, a two-thirds majority in the Bundestag is needed for a reform of the debt brake anchored in the Basic Law.