BERLIN (MNI) – German tax revenue growth slowed in April but
year-to-date trends remained above full-year projections, according to
data released Thursday by the Finance Ministry in its monthly report.
Total tax revenue growth (excluding local taxes) eased in April to
+3.4% y/y from +16.5% y/y in March. In the January-April period, total
tax revenue (ex-local) was up 8.9% y/y. Earlier this month, the
government’s tax estimate commission forecast full-year tax revenue
growth of 4.4%.
Federal tax revenue growth moderated to +4.7% y/y from +18.2% y/y
in March. In the first four months of the year, federal tax revenue
increased by 11.2% compared to full-year forecasts of +5.1%.
Federal revenue — tax intake plus other income — was up 7.0% y/y
in the January-April period. The 2011 budget assumes a 0.9% revenue drop
for the full year. Federal expenditures rose 1.8% y/y in the first four
months of the year compared to a full-year projection of +0.7%.
The ministry reaffirmed that federal net new borrowing this year
will likely be below E40 billion, markedly undershooting the E48.4
billion foreseen in the 2011 budget.
In the economic section of its report, the ministry noted that
“leading indicators signal a continuation of the economic upswing in
Germany in the further course of the year.” However, “growth momentum
will likely slow somewhat compared to the first quarter,” it predicted.
The upward trend of industrial orders speaks for a further
significant rise of domestic demand, the ministry remarked. Sinking
unemployment and rising wages will continue to support private
consumption, it reasoned.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$G$$$,M$X$$$,MFGBU$,MFX$$$,MGX$$$]
