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Printed sheets of euro banknotes: Federal debts have increased

Photo: Esma Cakir/dpa

Public debt increased by 77.4 billion euros in the last quarter of 2023 compared to the end of 2022. That's an increase of 3.3 percent. The overall public budget of the federal government, states, municipalities and municipal associations as well as social insurance, including all extra budgets, was in debt with 2.45 trillion euros at the end of 2023, as the Federal Statistical Office announced.

However, there is a small special effect. Since the second quarter of 2023, the debts of local public transport companies have been included in the calculation of public debt. Without public transport, the debt level would have grown by 2.9 percent and would be nine billion euros lower.

The creditor was the non-public sector - credit institutions as well as the so-called other domestic and foreign sectors such as private companies at home and abroad.

The federal government's debt alone rose by 4.7 percent or 76 billion euros by the end of 2023.

The main reason for this was an increased need for financing. Because of the energy crisis that arose as a result of Russia's war of aggression against Ukraine, the federal government needed more money. The Economic Stabilization Fund for Energy saw an increase in debt of 41.5 billion euros, or a good 137 percent, to 71.7 billion euros.

The debt of the Corona Economic Stabilization Fund special fund, however, fell by almost 30 percent to 36.9 billion euros. The Bundeswehr special fund, which was set up in mid-2022, had a debt of 5.8 billion euros; at the end of 2022 it had not yet taken on any debt.

Countries are reducing debt

According to the Federal Statistical Office, the states were able to reduce their debts. Their debt was 595.4 billion euros at the end of 2023. That was 1.9 percent or 11.5 billion euros less than at the end of 2022.

The largest percentage decreases in debt occurred in Mecklenburg-Western Pomerania (-13.1 percent), Bavaria (-8.7 percent) and Lower Saxony (-6.2 percent). Relatively speaking, debts rose the most in Brandenburg (+6.0 percent), Saxony (+4.1 percent) and Hesse (+2.7 percent).

The debt of municipalities and municipal associations rose by a good nine percent to 153.6 billion euros. The municipalities in Baden-Württemberg recorded the highest increase at 14.5 percent. Saxony and Bavaria followed behind - with 14.4 percent and 13.8 percent. In Brandenburg and Saarland, municipal debt fell by 4.3 percent.

There was an increase in social security by 3.2 percent to 22.3 million euros.

mmq/Reuters/AFP