BERLIN (MNI) – The German Finance Ministry wants to lower federal
net new borrowing next year to E31.5 billion, thanks to prospects for
stronger tax revenues, senior finance ministry officials said Monday,
citing a ministry proposal to be adopted by the government cabinet on
Wednesday.
For 2013, the ministry proposal foresees federal net new borrowing
of E22.3 billion, for 2014 of E15.3 billion and for 2015 of E13.3
billion, the sources said.
Federal expenditures are tabled at E303.8 billion in 2012, E305.7
billion in 2013, E304.4 billion in 2014 and E309.5 billion in 2015, the
officials said.
Federal tax revenue is projected at E243.0 billion in 2012, E252.9
billion in 2013, E261.4 billion in 2014 and E270.5 billion in 2015, the
sources said.
Other revenue is seen at E29.3 billion in 2012, E30.5 billion in
2013, E27.6 billion in 2014 and E25.8 billion in 2015, the officials
said. This includes, for example, proceeds from highway tolls,
distributed dividends and the Bundesbank profit.
The budget projections are based on the expectation of GDP growth
of 2.3% this year, 1.8% next year and 1.6% per year for 2013-2015, the
sources pointed out.
For the current year, the ministry still intends bring down federal
net new borrowing below E40 billion, despite lower transfers from the
Bundesbank, Deputy Finance Minister Werner Gatzer said last week.
“We still believe that we can meet that goal,” Gatzer said,
pointing to the improving economic development. “Several economic
research institutes have revised up their growth forecasts in recent
days,” he observed.
The Bundesbank announced last week that its 2010 profit fell to
E2.2 billion. The government had projected a profit of E3.0 billion in
its 2011 budget. The profit of the central bank flows directly into
government coffers.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
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