Financial assets are shrinking noticeably
The German state has 20 billion less in its account
September 22, 2023, 10:38 a.m
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The numerous government aid programs in recent years are also reflected in the financial assets of the federal, state and local governments. In 2022 this will fall by a good 20 billion euros. In the federal states in particular, developments sometimes differ massively.
The financial assets of the German state have fallen. The federal, state, local and social security systems, including all extra budgets, had a total of 1,077.8 billion euros at the end of 2022, as the Federal Statistical Office announced. That is 1.8 percent or 20.2 billion euros less than a year before. However, there are also liabilities that recently totaled a good 2.4 trillion euros. The federal government’s financial assets alone fell by 7.8 percent or 33.4 billion euros to 394 billion euros.
“The reason for this development was that, compared to the previous year, significantly fewer liquid assets had to be kept in reserve to ensure the federal government’s ability to act in the implementation of aid packages and programs to deal with the economic consequences of the corona pandemic,” explained the statisticians.
The countries’ financial assets also fell by 4.9 percent to 280.2 billion euros. The development was very different in the individual federal states. The largest percentage declines occurred in Bremen (-54.8 percent) and Hesse (-22.8 percent), which was mainly due to a reduction in the cash collateral required to be deposited for derivative transactions. The strongest increases were recorded in Saxony-Anhalt with 23.5 percent and Saxony with 17.8 percent. “The development in Saxony-Anhalt was primarily related to the initial provision of liquid funds to the Corona special fund,” said the statisticians.
The municipalities and municipal associations recorded an increase in financial assets by 5.6 percent to 234.7 billion euros in 2022. Social security also reported an increase of 9.8 percent to 168.9 billion euros. The statistics take into account the stock of cash, deposits, securities, loans and other claims against the non-public sector.