German tax estimate: 43 billion euros more by 2030, but Klingbeil sees no extra room
Germany's federal, state and local governments can expect 43.4 billion euros more in tax revenue by 2030 than forecast in spring. Little of it reaches the federal budget, where gaps remain.
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Germany's official tax estimators expect federal, state and local governments to collect a combined 43.4 billion euros more through 2030 than projected in May. Total tax revenue including the EU share is set to top one trillion euros for the first time in 2027. The upgrade reflects a brighter outlook, with the government forecasting growth of 1.3 percent in 2026 and 1.1 percent in 2027.
The federal government's gain is small, however. According to Reuters, its revenue this year is running 3 billion euros below expectations, while 2027 is projected to bring 4.1 billion euros more, an amount budget state secretary Steffen Meyer says will be absorbed by a planned income tax reform and less room for new borrowing. "The positive news: there are no new gaps," Finance Minister Lars Klingbeil of the SPD said. "The bad news: no new room for manoeuvre is opening up either."
More than 100 billion euros remain unfunded in the financial plan for 2028 to 2030. Chancellor Friedrich Merz's proposed electricity tax cut for all consumers would cost about 5.4 billion euros a year, and Klingbeil has asked for funding proposals. The Greens called the extra revenue a cyclical "flash in the pan". The budget committee is due to finalise the 2027 budget on Nov. 12.