Abstract of the Federal Ministry of Finance s Monthly Report

Transcription

1 Federal budget and fiscal policy figures Abstract of the Federal Ministry of Finance s Monthly Report December 2013 Federal budget and fiscal policy figures Federal budget trends up to and including October Trends in federal expenditure by functions 4 Trends in federal expenditure by economic categories 6 Trends in federal revenue 8 Trends in general government tax revenue 10 Development of tax revenue in total public budgets in the current year 10 Federal borrowing and market resources 13 Federal market resources after absorption of special fund debts 13 Guaranteed debt 14 Publication schedule 14 Key dates on the fiscal policy agenda 15 List of tables Calculation of the financial deficit 3 Federal expenditure by functions 5 Federal expenditure by selected economic categories 7 Federal tax revenue (by selected categories) 9-1 -

2 Federal budget trends up to and including November 2013 Trends in the federal budget Actual December 2012 Target Actual2 as of November 2013 Expenditure ( bn) Year-on-year change in % (year to date) +1.9 Revenue ( bn) Year-on-year change in % (year to date) +2.1 Tax revenue ( bn) Year-on-year change in % (year to date) +1.7 Financial balance ( bn) Deficit financing through: Cash resources ( bn) Revenue from coin ( bn) Net borrowing/current financial market balance 3 ( bn) Includes 2013 supplementary budget. 2 As per accounts. 3 (-) debt repayment; (+) borrowing Trend in expenditure Federal expenditure from January to November 2013 inclusive amounted to 287.0bn, 5.4bn (1.9%) more than in the same period last year. This increase was driven mainly by the allocation of 8bn to the special relief fund set up to help victims of the May/June 2013 floods in Germany. In contrast, the government s lump-sum compensation to German health insurance funds for the costs of services benefiting society as a whole (e.g., general health promotion, disease prevention) was down by 2.3bn, and there were also savings of 3.6bn resulting from the discontinuation of the Federation s contribution to the costs of funding job promotion. Trend in revenue At 245.1bn, the Federation s revenue up to and including November surpassed the total for the same period last year by 4.9bn (2.1%). Tax receipts amounted to 223.5bn, an increase of 3.8bn (1.7%) on the year. Administrative revenue in the January November 2013 period totalled 21.5bn, up by 5.8% on the year. Financial balance The financial deficit was 41.9bn at the end of November. Based on current trends, and taking into account the fact that the month of December generally registers high levels of revenue, it seems certain that the 25.1bn in net new borrowing that was planned for 2013 will not be fully utilised

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4 Trends in federal expenditure by function Target Actual January to November 2013 m Share in % m General public services Economic cooperation and development Defence Government, central administration Revenue administration Education, science, research, cultural affairs Support for school and university students and training programme participants Science, research and development outside of higher education institutions Social security, family youth affairs, labour market policy Social insurance including unemployment insurance Loans/subsidies to the Federal Employment Agency Labour market policy of which: Unemployment benefit II under Book II of the Social Code Unemployment Benefit II, government housing and heating allowances under Book II of the Social Code Family assistance, welfare services, etc Social benefits for the consequences of war and political events Health, environment, sport, recreation Housing, regional planning and local community services Housing, home ownership savings premium Food, agriculture and forestry Energy and water supply, trade and services Regional support measures Mining, manufacturing and construction Transport and communication Roads Railways and public transport Financial management Interest expenditure Total expenditure Includes 2013 supplementary budget

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6 Trends in federal expenditure by economic category Actual December Target 1 Actual January to November 2012 m Share in % m Share in % m January to November 2013 Year-onyear change in % (year to date) Consumption expenditure Personnel expenditure Salary payments Pensions Current material expenditure Non-personnel expenditure Military procurement Other Interest expenditure Current grants and subsidies to public administration to other sectors including: Private enterprises Pensions, assistance etc Social insurance funds Other asset transfers Investment expenditure Financial assistance Grants and subsidies Loans, guarantees Acquisition of holdings; capital contributions Fixed asset investment Construction measures Acquisition of movable assets Acquisition of real property General reduction/increase in expenditure Total expenditure Includes 2013 supplementary budget

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8 Trends in federal revenue Actual December Target 1 Actual January to November 2012 m Share in % m Share in % m January to November 2013 Year-onyear change in % (year to date I. Tax revenue Federal share of joint taxes: revenue from individual and corporate income taxes (incl. final withholding tax on interest and capital gains)) on which: Wages tax Assessed income tax Non-assessed taxes on earnings Final withholding tax on interest and capital gains Corporation tax Value added taxes (VAT) Trade tax apportionment Energy duty Tobacco duty Solidarity surcharge Insurance tax Electricity duty Motor vehicle tax Nuclear fuel tax Spirits duty Coffee duty Aviation tax Supplementary grants to Länder EU GNI own resources EU VAT own resources Grants to Länder for public transport Grants to Länder for motor vehicle tax and HGV toll II. Other revenue Revenue from economic activity Interest revenue Loan repayments, holdings, privatisation revenue Total revenue Includes 2013 supplementary budget

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10 Trends in general government tax revenue Trends in general government tax revenue Current-year trends in tax revenue (excluding local authority taxes) 2013 Joint taxes September Year-onyear change January to September Year-onyear change 2013 estimates Year-onyear change in m in % in m in % in m 4 in % Wages tax Assessed income tax X Non-assessed taxes on earnings Final withholding tax on interest and capital gains Corporation tax X Value added taxes (VAT) Trade tax apportionment Increased trade tax apportionment Total joint taxes Federal taxes Energy duty Tobacco duty Spirits duty Insurance tax Electricity duty Motor vehicle tax Aviation tax Nuclear fuel duty Solidarity surcharge Other federal taxes Total federal taxes Länder taxes Inheritance tax Real property transfer tax Betting and lottery tax Beer duty Other Länder taxes Total Länder taxes EU own resources Customs duty VAT-based own resources GDP-based own resources Total EU own resources Federation Länder EU Local authorities share of income tax and value added tax Total tax revenue (excluding local authority taxes) Methodology: Total cash income from the various taxes is recorded and allocated to the various government levels as stipulated by law. Actual tax amounts collected in the current month by individual government levels may differ from target amounts due to technical reasons. ² After deduction of child benefit refunds by the Federal Central Tax Office. 3 After supplementary grants; any discrepancies with table on federal revenue are due to methodology used. 4 Source: Working Party on Tax Revenue Estimates, November

11 Trends in general government tax revenue Tax revenue of the Federation and Länder in November 2013 Tax revenue in November 2013 (excluding local authority taxes) was up by 3.9% on the year. Taken together, joint taxes posted a year-onyear revenue increase of 3.7%. Revenue from taxes accruing solely to the Federation increased by 4.7%, compared with 8.4% for the Länder taxes. The Federation s revenue rose by 5.5%, just as in the previous month. All of the components that make up the Federation s revenue played a role in this regard. While tax revenues rose noticeably, there were declines in transfers to the EU and in supplementary federal grants, both of which are financed from the Federation s tax revenues. In contrast, the lower level of supplementary federal grants had a dampening effect on growth in revenue accruing to the Länder (which was up by 2.9%). On a cumulative basis from January to November 2013, federal revenue was up by 1.7% on the year, while Länder revenue surpassed last year s figure by 3.2%. The share of joint taxes that is paid to local authorities also showed a clear increase (6.8%). So far in 2013, the European Commission has availed itself of its right to call in the full amount of own resources from the member states. In the January November period, transfers to the EU led to a stark reduction in the Federation s revenue compared with last year. However, the member states total annual payments of own resources into the EU budget cannot be quantified precisely until the end of the budget year. Cash receipts from wages tax in November 2013 were up by 6.4% over November Child benefit payments, which are financed through wages tax receipts, were significantly lower than in the same period last year ( 1.7%). Gross revenue from wages tax (before deduction of child benefit and old-age pension allowance) posted a year-on-year increase of 4.7%. The ongoing favourable situation on the labour market and this year s wage increases continue to have a positive impact on wages tax receipts. Cash receipts in the period from January to November 2013 exceeded last year s levels by 6.1%. Gross revenue from assessed income tax in November registered a year-on-year rise of 13.0%, while there was a 4.5% increase in refunds made to employees assessed for income tax. As a result, cash receipts from assessed income tax improved only slightly, rising by 22m to 0.6bn. On a cumulative basis, however, cash receipts from assessed income tax rose by 16.0% on the year during the period from January to November The cash position for corporation tax improved slightly on the year in November, rising by around 0.2bn to 0.4bn. For the cumulative period from January to November 2013, the yield from corporation tax rose to 13.3bn, an 18.5% gain on the year. In November, the gross yield from non-assessed taxes on earnings was 28.3% higher than in November After adjusting for refunds by the Federal Central Tax Office, which were relatively low compared with last year, cash receipts from non-assessed taxes on earnings almost doubled, totalling 0.6bn. Cash receipts as a whole were down by 14.8% on the year in the January November 2013 period. Receipts from withholding tax on interest and capital gains posted a gain of 6.9% on the year in November On a cumulative basis, revenue grew by 4.1% year-on-year in the January November 2013 period. VAT receipts in November 2013 fell short of last year s level by 1.3%. The downward trend in import VAT continued and became even more marked, with receipts falling by 4.4%. Receipts from domestic VAT declined slightly, slipping by 0.2%. In total, VAT revenue increased by 1.2% on the year during the period from January to November

12 Trends in general government tax revenue Taxes accruing solely to the Federation were up by 4.7% on the year in November The considerable revenue declines posted by tobacco duty ( 4.2%), motor vehicle duty ( 6.8%) and coffee duty ( 7.8%) were more than balanced out by revenue growth for energy duty (+4.8%), insurance tax (+2.9%), electricity duty (+9.4%), solidarity surcharge (+13.1%) and aviation tax (+3.4%). With nuclear fuel duty, receipts of 0.3bn were realised. Over the entire January November 2013 period, federal taxes recorded a year-on-year increase of 1.1%. Taxes accruing solely to the Länder posted a year-on-year increase of 8.4% in November As in the preceding months, this was largely driven by revenue from real property transfer tax, which registered a plus of 11.2% on the already high level of a year ago. Higher tax rates, property price increases and the rising number of property purchases all played a role in this. Other taxes posting strong revenue growth included inheritance tax (+3.6%) and betting and lottery tax, which posted year-onyear growth of 14.4%. In contrast, fire protection tax and beer duty posted declines compared with last year (of 9.5% and 1.4% respectively). Receipts from taxes accruing to the Länder were up by 10.4% in the January November 2013 period

13 Federal borrowing and market resources Federal borrowing and market resources Credit market funds (in m) 1 Reporting date: Increase Decrease Reporting date: 30 September October 2013 Inflation-linked securities Federal bonds (Bunds) Deutschland bonds (D-bonds) year federal notes (Bobls) Federal savings notes Federal treasury notes (Schaetze) Treasury discount papers (Bubills) Treasury financing papers Day bonds Securitized loans Other borrowing (year to date) Total credit market funds m By maturity Short term (up to 1 year) Medium term (1 year to 4 years) Long term (over 4 years) Reporting date: 30 September 2013 m Reporting date: 31 October Total credit market funds For technical reasons, borrowing figures are published with a two-month delay. For this reason, figures up to and including June will be published in the August monthly report year and 30-year federal bonds and euro equivalent of USD bonds 3 Federal savings notes (Bundesschatzbriefe) type A and B. 4 One-year and two-year federal treasury financing papers (Finanzierungsschätze)

14 Publication schedule of the Monthly Reports Guarantees Authorised amount Amount allocated as of 30 September 2013 Authorised amount as of 30 September 2013 Export credit guarantees bn Loans to foreign debtors, direct foreign investment, EIB loans, KfW shareholding in EIF Bilateral financial cooperation projects Food stockpiling Domestic guarantees International financial institutions Treuhandanstalt successor organisations Interest compensation guarantees Guarantees for loans to Greece under the Monetary Union Financial Stability Act of 7 May Guarantees under the Act Regulating the Assumption of Guarantees under a European Stabilisation Mechanism of 22 May Publication schedule of the Monthly Reports Publication schedule of the Monthly Reports Monthly Report Reporting period Publication date January 2014 December January 2014 February 2014 January February 2014 March 2014 February March 2014 April 2014 March April 2014 May 2014 April May 2014 June 2014 May June 2014 July 2014 June July 2014 August 2014 July August 2014 September 2014 August September 2014 October 2014 September October 2014 November 2014 October November 2014 December 2014 November December

15 Key dates on the fiscal policy agenda Key dates on the fiscal policy agenda Key dates on the fiscal policy agenda January 2014 Eurogroup and ECOFIN in Brussels February 2014 European Council in Brussels February 2014 Eurogroup and ECOFIN in Brussels February 2014 Meeting of the G20 finance ministers and central bank governors in Sydney March 2014 Eurogroup and ECOFIN in Brussels March 2014 European Council in Brussels 1 2 April 2014 Informal ECOFIN in Athens 11 April 2014 Meeting of the G20 finance ministers and central bank governors in Washington April 2014 Spring meeting of the IMF and World Bank in Washington