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German Municipal Deficit Widens to €19.7 Billion in First Half of 2025

Destatis cites spending growth outpacing revenues, driven by personnel costs, social benefits, rising interest.

Overview

  • Core municipal budgets accounted for €19.0 billion of the gap, with extra budgets posting a €0.7 billion shortfall.
  • Total spending rose 6.9% to €198.7 billion, while revenues increased 6.2% to €179.0 billion.
  • Major outlays climbed across categories: personnel +6.3% (€52.0 billion), social benefits +6.4% (€44.5 billion), investment +5.5% (€22.6 billion), interest +18.8% (€2.1 billion).
  • Municipal tax receipts grew 2.8% to €56.5 billion as trade tax was flat at €31.4 billion, while fees and charges rose 8.2% to €25.1 billion.
  • Destatis reports year-on-year figures are fully comparable again from 2025, and notes some state transfers were pulled into the first half.