Germany: public finances

How big is Germany's federal budget in 2026?

The 2026 federal budget totals €524,540,138,000 in revenue and expenditure, according to section 1 of the Budget Act 2026, published by the Federal Ministry of Justice. Section 2 authorises the Finance Ministry to borrow up to €97,964,556,000 to cover spending in 2026. Separate plans are set for special funds, including €25.5 billion for the Bundeswehr fund and €58.1 billion for the infrastructure and climate neutrality fund.

The core budget figure excludes these special funds, so total federal spending is higher. The Budget Act is passed by the Bundestag each year; the detailed plans by ministry are attached to it as annexes.

Official sources: Budget Act 2026, section 1 · Budget Act 2026, section 2

What is Germany's budget deficit?

Germany's general government deficit was €71.3 billion in the first half of 2026, or 3.1% of GDP, according to Destatis press release No. 305 (corrected on 30 September 2026). It was €38.5 billion larger than a year earlier, mainly because of central government, whose deficit was €48.1 billion. For 2025 as a whole, the Destatis indicators table shows a deficit of €132.1 billion, or 2.9% of GDP.

These figures use the European accounting rules (ESA 2010) that apply to the EU's 3% deficit reference value. They cover federal, state and local government and social security funds, so they differ from the federal budget's own borrowing figure.

Official sources: Destatis: government deficit, 1st half of 2026 · Destatis: important economic indicators

How much tax does Germany collect?

Taxes collected by the federal government, the states and municipalities totalled €989.8 billion in 2025 before redistribution, €42.1 billion or 4.4% more than in 2024, according to Destatis tax revenue figures published on 17 April 2026. The Destatis tax revenue page gives the federation's own share as €388.7 billion and the states' as €415.3 billion.

These are cash receipts, counted when taxes are paid. Joint taxes such as income tax and VAT are shared between levels of government under fixed formulas. Social security contributions are not taxes and are excluded; including them, total general government revenue was €2,137.9 billion in 2025, according to the Destatis national accounts.

Official sources: Destatis: tax revenues 2025 · Destatis: important economic indicators

What is Germany's debt brake?

The debt brake in Article 115 of the Basic Law limits federal net borrowing to 0.35% of nominal GDP in normal economic conditions, with an adjustment for the business cycle. The article also provides that spending on defence, civil protection, intelligence services, IT security and aid to states attacked in breach of international law is deducted from the limit where it exceeds 1% of GDP.

Article 143h also allows a special fund of up to €500 billion for additional infrastructure investment and climate neutrality by 2045, outside the borrowing limit. Deviations from the limit are recorded on a control account, and an emergency clause lets the Bundestag suspend the rule in a crisis.

Official sources: Basic Law, Article 115 · Basic Law, Article 143h

How much does the German government spend?

General government expenditure in Germany was €2,270.0 billion in 2025, up from €2,147.5 billion in 2024, according to the Destatis table of important economic indicators (as at 30 September 2026). Revenue was €2,137.9 billion, so spending exceeded revenue by €132.1 billion, or 2.9% of GDP.

General government includes federal, state and local authorities and the social security funds, such as pension and health insurance, which account for a large share of spending. The figures are national accounts estimates and are revised. Detailed breakdowns by level of government and type of spending are in the Destatis tables on revenue and expenditure.

Official sources: Destatis: important economic indicators

What is Germany's government debt?

The latest figure from the IMF, for 2025, is 62.7% of GDP. Since 2005 it has ranged from 58.3% of GDP (2019) to 81.0% of GDP (2010). It is 14th highest of 51 in Europe & Central Asia, where the median is 46.9% of GDP. Of 185 countries with 2025 data, 69th highest.

What is Germany's budget deficit?

In 2025, general government net lending or borrowing in Germany was -2.9% of GDP, according to the IMF, which is a deficit. The peak was 1.9% of GDP in 2018 and the low -4.4% of GDP in 2010. It is 31st highest of 51 in Europe & Central Asia, where the median is -2.4% of GDP. World rank, highest first: 99th of 188.

How much does Germany's government take in?

According to the IMF, general government revenue in Germany was 47.2% of GDP in 2025. That is the highest since at least 2005. Across Europe & Central Asia the middle value was 41.3% of GDP, and Germany placed 11th highest of 50. World rank, highest first: 22nd of 187.

What is Germany's government spending?

50.1% of GDP: that is general government spending in Germany for 2025, according to the IMF. Its high point since 2005 was 2020, at 50.7% of GDP; its low point was 2007, at 43.5% of GDP. It is 8th highest of 50 in Europe & Central Asia, where the median is 43.3% of GDP. World rank, highest first: 17th of 186.

What is tax revenue in Germany?

The latest figure from the IMF, for 2024, is 10.9% of GDP. Since 2005 it has ranged from 10.7% of GDP (2023) to 12.1% of GDP (2013). Across Europe & Central Asia the middle value was 20.8% of GDP, and Germany placed 39th highest of 42. Of 92 countries with 2024 data, 79th highest.

What is Germany's defence spending?

2.3% of GDP: that is military spending in Germany for 2025, according to SIPRI. That is the highest since at least 2005. Across Europe & Central Asia the middle value was 2.0% of GDP, and Germany placed 19th highest of 46. Of 149 countries with 2025 data, 46th highest.