The German Finance Ministry predicts that tax revenues will fall by around 81 billion euros by 2029, Der Spiegel magazine reports.
The tax assessment working group has presented its forecast for 2025-2029. The state will receive 81.2 billion euros less in tax revenues during this five-year period. Compared to the forecast made by this group in October 2024, the treasury will receive 33.3 billion euros less during the period in question.
The tax assessors' forecast is an important basis for discussing the federal budget. The need for savings or the possibility of additional spending depends, among other things, on the annual tax assessment. "The results show that we need to increase revenue through higher economic growth," said German Finance Minister Lars Klingbeil, presenting the report. "This is the only way to achieve new fiscal flexibility. "That is why we are now embarking on the most extensive modernization of our country in decades," he added. Overall, however, the results are largely in line with what was already expected during the coalition talks between the CDU/CSU and the SPD.
On June 25, the German Finance Minister plans to adopt the current year's budget through the cabinet. The Bundestag (German parliament) is expected to discuss the issue before the summer recess, which begins in July, and then vote, probably in September.