After the Corona low of 2020, the tax revenue of the federal, state and local governments rose significantly again last year.

According to the Ministry of Finance, the state took a total of 761 billion euros in taxes.

That is 11.5 percent more than in the previous year.

Despite the ongoing pandemic, slightly more tax revenue came in than in the pre-crisis year of 2019 (735.9 billion).

In 2020, the corona pandemic led to a significant slump in economic output and thus also in tax revenue, but according to the Ministry of Finance, a noticeable economic recovery began in spring 2021.

Above all, revenue from community taxes, such as wage and income tax and sales tax, rose again significantly by more than 80 percent.

Less credit

Pure federal taxes, on the other hand, decreased again - which was mainly due to the abolition of the solidarity surcharge for most citizens.

Because people drove and traveled less in the second year of the pandemic, income from the taxation of petrol and diesel also fell.

The unexpectedly high tax revenue also contributed to the fact that the federal government had to take out fewer loans last year than expected.

Around EUR 24.8 billion in credit authorizations were not used.

In addition, Finance Minister Christian Lindner (FDP) wants to shift unused loans into the energy and climate fund to the tune of 60 billion euros so that they can be used for investments in climate protection and transformation in the coming years.

There are no signs of a real easing of the recent sharp rise in inflation after inflation stood at 5.3 percent in December.

"At the beginning of 2022, the inflation rate should fall somewhat," said the Ministry of Finance.

"Nevertheless, the rate should initially remain at a level that is noticeably higher than in the years before the crisis."

Further declines to a more moderate level are to be expected in the course of the year.

Economics Minister Robert Habeck said this week that he would expect an inflation rate of 3.3 percent (2021: 3.1 percent) in 2022 and would only see a decline to two percent again in 2023.