COVID-19 crisis causes second highest German gov't deficit in 30 years: Destatis
By Xinhua Published: Feb 25, 2021 08:51 AM
The coronavirus pandemic and its consequences resulted in a general financial deficit for the German state of 139.6 billion euros (169.3 billion U.S. dollars) last year, the Federal Statistical Office (Destatis) said on Wednesday based on preliminary calculations.
"It was the first deficit since 2011 and the second highest deficit since German reunification," Destatis noted. Measured as a percentage of gross domestic product at current prices, the deficit ratio for 2020 reached 4.2 percent, according to Destatis.
Compared to 2019, Germany's total fiscal revenues fell by 3.0 percent last year, while expenditures went up 9.3 percent, according to Destatis.
The largest share of the financing deficit last year was caused by Germany's federal government, which recorded a deficit of 86.6 billion euros, according to Destatis. For the country's federal states, the figure was 18.0 billion euros, while local governments only recorded a "relatively small" deficit of 1.3 billion euros.
The second largest part of Germany's financing deficit was caused by the social security funds with a deficit of 33.7 billion euros, according to Destatis.
"A major factor contributing to the deficit of the central and state governments was expenditure made on interim financial help and emergency aid as well as the acquisition and supply of protective equipment," Destatis noted.
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