BERLIN (MNI) – German tax revenue growth picked up further in
October, according to data released Monday by the Finance Ministry.
Federal tax revenue 11.5% in October was 11.5% higher on the year,
giving a 10.4% annual gain for the January-October period. But the
result was somewhat skewed to the upside by lower transfers to the EU.
The government’s full-year forecast, which was revised up markedly
earlier this month, is for federal tax revenue growth of 9.2%.
Federal revenue — tax intake plus other income — was up 7.0% on
the year in the first ten months of the year. The 2011 budget assumes a
0.9% revenue drop for the full year. Federal expenditures were 1.7%
lower on the year in the January-October period compared to a full-year
estimate in the budget law of +0.7%.
The ministry reaffirmed its expectation that federal net new
borrowing this year would likely be significantly below E25 billion,
thus markedly undershooting the E48.4 billion earmarked in the 2011
budget.
Total tax revenue (excluding local taxes) in October was 8.5%
higher on the year. In the first ten months of the year, total tax
revenue (ex-local) was up 8.6% on the year compared to a full-year
forecast of +7.5%.
In the economic section of its report, the ministry forecast that
the economic upswing would likely slow markedly in the fourth quarter.
Due to moderating global growth, inflation pressures would likely ease
as well.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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