BERLIN (MNI) – German tax revenue growth picked up in September and
tax revenue in the first nine months of the year was markedly above
full-year forecasts, according to data released Friday in the latest
monthly report of the finance ministry.
Federal tax revenue rose 9.6% y/y in September and was up 10.3% y/y
in the Jan-Sep period. The government’s standing full-year forecast is
for federal tax revenue growth of only 5.1%.
Federal revenue — tax intake plus other income — was up 6.4% on
the year in the first nine months of the year. The 2011 budget assumes a
0.9% revenue drop for the full year. Federal expenditures were 1.4%
lower on the year in the Jan-Sep period compared to a full-year estimate
of +0.7%.
The ministry reaffirmed its expectation that federal net new
borrowing this year will likely be significantly below E30 billion,
thus markedly undershooting the E48.4 billion earmarked in the 2011
budget.
Total tax revenue (excluding local taxes) rose 7.3% y/y in
September. In the first nine months of the year, total tax revenue
(ex-local) was up 8.6% y/y compared to a full-year forecast of +4.4%.
In the economic section of its report, the ministry noted that
economic growth in Germany in the second half of the year likely
moderated markedly. The industrial sector in particular will lose
momentum, the report remarked.
Current indicators, however, point to a continued favorable
development of private consumption, the ministry said. Growing
employment numbers are pushing income expectations of consumers, it
remarked.
While the recent rise of core inflation in Germany might be partly
due to firms passing on higher labor costs to consumers, the weakening
global economy will likely lead to easing imported inflation pressure,
the ministry argued.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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