Tax hole due to corona crisis 81 billion euros are missing.

Status: May 14, 2020 4:38 p.m..

The burdens from the corona pandemic threaten to tear a huge hole in the financial planning of the federal, state and local governments. Tax estimates predict a loss of more than 81 billion euros.

As a result of the corona crisis, the tax revenues of the federal, state and local governments will fall rapidly this year for the first time since the financial crisis in 2009. This is the conclusion of the current tax estimate, announced Federal Finance Minister Olaf Scholz.

The tax estimates assume that revenues will decrease by 81.5 billion euros compared to 2019 – a decrease of more than ten percent. The federal government is facing a decline of 44 billion euros and the federal states a minus of 35 billion euros. A further 15.6 billion euros are due to the municipalities, four billion euros to the transfers to the European Union.

The shortfall in income was “within the framework of what we could expect,” said Scholz in Berlin. He was convinced that the corona crisis was financially manageable. Thanks to a very solid budgetary policy, the government was able to deal with such a situation.

Nevertheless, the estimate is only a “snapshot”, added the SPD politician. The further course of the pandemic and its effects could not be reliably predicted.

Compared to the tax estimate from last November, this represents a decline in expected income of 98.6 billion euros. This sum has already been budgeted for in the federal budget.

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Current news about the coronavirus.

Federal government is sticking to the basic pension.

Despite the financial burdens, the federal government wants to stick to the basic pension, which will be paid from next year, emphasized Scholz:

“We are now spending a lot of billions. We give large companies loans of several billion euros. And then someone comes along and says that we cannot pay the basic pension, which costs just over a billion.

more on the subject.

Bigger slump than during the financial crisis.

This means that tax estimates are expecting an even more drastic slump than during the financial crisis. A look at the coming years also predicts huge losses: By 2024, the federal, state and local governments will have around 315.9 billion euros less in their coffers than was forecast in autumn.

The federal government had already spoken of the worst recession in post-war history that Germany was facing. In the current economic forecast from spring, the government speaks of an expected drop in economic output of 6.3 percent. This also goes hand in hand with a decline in sales and trade tax income.

The income tax amounts will also decrease, as millions of employed nationwide currently have to receive short-time work benefits.

Altmaier expects a severe recession.

Scholz sees Germany armed.

The decline in tax revenue is offset by immense federal spending on Corona aid to mitigate the effects of the crisis on the economy. The 156 billion euros in new debts planned by the federal government will probably not be enough. In the coming month, Federal Finance Minister Olaf Scholz intends to present a further economic package that will probably result in billions in costs.

So far, the federal government says it has invested 453.4 billion euros in corona aid. In addition, there are guarantees for more than 800 billion euros, which may still have to take effect if companies cannot meet their credit obligations.

Scholz announced an unscheduled additional tax estimate in September before the budget for the coming year is drawn up.