Economic revival after Corona: the federal and state governments collect more taxes

Economic revival after Corona
The federal and state governments collect more taxes

The treasurers of the federal and state governments took in significantly more in May than a year ago. Above all, the economy, which picked up after the relaxation of corona restrictions, was responsible for the plus. The ministry also expects the economy to grow.

Federal and state tax revenues increased significantly in May, despite the Russian war against Ukraine. They were ten percent higher than a year earlier and totaled almost 55 billion euros monthly report of the Federal Ministry of Finance. In the first five months of the year, tax revenue grew by 15.1 percent to almost 315 billion euros. According to the report, the higher income is due, among other things, to an economic recovery after the corona restrictions were lifted.

In the near future, therefore, economic development is likely to continue to be shaped by the tension between, on the one hand, an industry affected by material shortages and high energy prices, and, on the other hand, positive stimuli from the service sector. Despite a recent decline in incoming orders, there is likely to be excess demand in industry, with companies having problems processing existing and new orders due to the shortage of preliminary products.

In the further course of the year, assuming that supply bottlenecks will decrease and that the war will not have any additional significant economic effects, an upward movement is also expected in this area, it said. However, the risks for further development remain considerable, particularly in view of the war in Ukraine.

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