Thursday, 23 February 2017

German budget surplus highest since 1990

 
 
Germany's budget surplus hit a post-reunification high of nearly 24bn euros (£20bn) in 2016 boosted by a higher tax take and increased employment.

 
This is the third year running that German government revenue has outstripped expenditure.


However, there was an increase in spending on housing and integrating refugees.


Under budget law, some of the surplus money will go into a fund to support the refugees.


Separately, official figures confirmed the economy grew by 1.9% last year, mainly because of higher spending by consumers and government.


The budget figures, published by Germany's Federal Statistical Office, showed that income was higher than spending in all areas of government - federal, state and local government, as well as social security.


The office said the main factors improving revenues were the large increase in income tax and property tax payments as well as the "good employment situation", which led to a "considerable growth" in social contributions.


In terms of expenditure, a big factor was increased spending by state and local governments on things such as accommodation for refugees, as well as payments to them for living expenses.




BBC    News.