German State Deficit Rises to €119 Billion Despite Record Revenues

Germany's 2024 deficit grew by €15 billion as spending outpaced unprecedented tax and social contribution revenues surpassing €2 trillion.

Germany's 2024 state deficit reached €118.8 billion, up €15 billion from 2023, marking the largest shortfall since 2021.
State revenues exceeded €2 trillion for the first time, with a 4.8% increase driven by higher taxes, social contributions, and CO2-related charges.
Expenditures increased by 5.3%, primarily due to rising costs in pensions, social benefits, healthcare, and interest payments on debt.
All four state sectors—federal government, regional states, municipalities, and social security—recorded deficits for the first time since 2009.
The federal government reduced its deficit by €30.5 billion, while deficits for regional states and municipalities significantly worsened.