BERLIN: Following a three-day meeting, a panel of economic experts has said Germany is likely to see its tax income rising until 2020. But the finance minister warned there would be no room for lavish spending.
Federal, state-level and regional authorities in Germany can look forward to higher annual tax incomes in the years ahead due to high employment and a robust labor market.
Experts from the Finance Ministry, the central bank (Bundesbank) and the National Statistics Office (Destatis) said Wednesday tax revenues until 2020 would likely be 42.4 billion euros ($48.7 billion) higher than predicted during the previous estimate last November.
Finance Minister Wolfgang Schäuble told reporters in Berlin total tax income would come in at 691.2 billion euros this year alone – 5 billion euros more than previously forecast.
By 2020, annual tax revenue would amount to 808.1 billion euros, according to the latest estimate by the panel of experts, the minister added.
The latest calculations will see regional authorities in Germany press even harder for more financial support from the federal state as they grapple with considerable extra costs linked to the influx of refugees.
It’s not ruled out that Wolfgang Schäuble will heed their call. But on Wednesday, he made it clear that he’s not willing to give up his policy of sticking to a balanced budget.
“Despite the good figures, there’s no leeway for any additional spending,” the minister warned.
