BERLIN (MNI) – Germany aims to lower federal net new borrowing next
year to E31.4 billion, the weekly Der Spiegel reported on its website
Thursday, citing the Finance Ministry’s new medium-term fiscal
projections.
For 2013, the ministry sees federal net new borrowing of E22.9
billion, for 2014 E18.7 billion and for 2015 E12.8 billion, according to
Der Spiegel.
For the current year, the ministry now targets federal net new
borrowing of less than E40 billion, the magazine wrote. In its 2011
budget bill the government had projected E48.4 billion.
The Bundesbank said Monday it expected federal net new borrowing in
2011 to be markedly below the budget projection. The central bank
pointed to the pick-up in tax revenue and a lower interest rate burden
as reasons for its optimism.
Federal tax revenue rose 11.0% on the year in January, but the
result was distorted to the upside due to lower contributions to the EU
than a year earlier, the Finance Ministry said Monday. For the full
year, the government’s tax estimate commission forecast in November a
tax revenue drop of 0.2%.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,M$G$$$,MFGBU$,MGX$$$,MFX$$$]
