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New tax estimate: no change for Berlin

Berlins Finanzsenator Stefan Evers (CDU)

Berlin's Senator for Finance Stefan Evers

The latest tax estimate for the federal, state and local governments brings virtually no financial changes for Berlin.

The experts' projection for the State of Berlin were essentially at the level of the spring estimate, the Senate Department for Finance announced on Saturday.

"Economic risks for tax revenue development remain significant"

Berlin can expect tax revenues of 28 billion euros in the current year. For 2024, experts predict around 28.7 billion euros, and for 2025 around 30.3 billion euros. Compared with the supplementary budget for 2023 and the draft budget for 2024/2025, changes are only marginal. "The result of the current tax estimate reflects the difficult economic situation as well as the tax law changes currently planned at the federal level," explained Senator for Finance Stefan Evers (CDU). "The economic risks for the development of tax revenues remain significant."

Financial need for action increases

For 2024 and 2025, Evers said, the need for financial action is increasing, while the margins continue to shrink. "The development of the budget situation thus represents one of the greatest political challenges for the coming years." According to the experts' forecast presented last Thursday, the financial margins of the federal, state and local governments remain tight overall. According to the forecast, the state will only collect around 1.9 billion euros more in taxes next year than was thought in the spring.

No high growth rates expected

For the entire estimation period up to 2027, the estimators predict 23.3 billion euros more revenue than in the spring. This is a far cry from the high growth rates of past years, when budget politicians were still regularly able to distribute billions.

Author: dpa/deepl.com
Publication date: 30 October 2023
Last updated: 30 October 2023

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