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Germany’s Tax Estimators Begin Revenue Review as Early Figure Points to Tight Budget Room

Even with a higher growth outlook, rising interest costs and existing spending commitments limit scope for new outlays.

Overview

  • The Arbeitskreis Steuerschätzung convenes in Berlin through Thursday to update the federal tax forecast that feeds directly into budget decisions.
  • Preliminary expectations put next year’s federal revenues at about €387 billion, indicating only limited additional fiscal headroom.
  • The government recently lifted its 2026 growth projection to 1.3 percent, while a parliamentary “investment booster” for companies must be factored into receipts.
  • A Handelsblatt report cited by Focus says the new forecast could add roughly €100 billion through 2029 due to a higher 2025 revenue base and expected investment effects, though final figures are not yet published.
  • Economists and lawmakers caution that debt-service costs, special funds and higher defense outlays keep the budget under pressure, with the IMF projecting just 0.9 percent growth and urging prudence.