Debt watch, about dts
Debt watch, about dts

Public debt increased in the first quarter

Public debt in Germany rose at the beginning of 2020.

The total public budget for the non-public sector was indebted to 2020 billion euros at the end of the first quarter of 1.955,4, the Federal Statistical Office (Destatis) announced on Tuesday. As a result, the debt level rose by 2019 percent or EUR 3,0 billion compared to the fourth quarter of 56,2.

Compared to the first quarter of 2019, the debt level rose by 1,5 percent (28,3 billion euros). The corona crisis had its first effects on the financial situation of public budgets: the federal government, the states and the municipalities / municipal associations were each more heavily in debt at the end of the first quarter of 2020 than at the end of the fourth quarter of 2019. The federal government's debt rose by 2,6 percent during this period or EUR 31,2 billion to EUR 1.220,3 billion. The countries were in debt at the end of the first quarter of 2020 with 602,4 billion euros. This corresponds to an increase of four percent or EUR 23,3 billion compared to the previous quarter. The development was very different in the individual countries: in Bremen the debt rose by 27,1 percent, in Saxony by 22,0 percent and in Bavaria by 19,5 percent. The strong increase in Bremen is mainly due to the borrowing for the provision of cash collateral for derivatives and the build-up of reserves for future growth in expenditure to cushion the corona crisis. As a precaution, cash loans were taken out in Saxony with a view to future liquidity shortages. In order to cope with the corona crisis, an additional 2,5 billion euros in debt was raised in Bavaria. The borrowing of the newly founded special fund “Saarland Pact” in the amount of 115 million euros to repay cash loans from Saarland municipalities / municipal associations was reflected in an increase in Saarland debt of 1,1 percent or 149 million euros. There were declines in debt levels in Schleswig-Holstein (-1,4 percent) as well as in Hamburg and Brandenburg (both -0,7 percent). The debt levels of the municipalities and associations of municipalities rose by 2019 percent or 1,4 billion euros to 1,8 billion euros compared to the fourth quarter of 132,6, according to the statisticians. Here, too, the development was different: debt rose particularly in Hesse (+4,5 percent), Schleswig-Holstein (+3,7 percent) and Rhineland-Palatinate (+3,1 percent).

In contrast, debt levels fell in particular in Saxony (-8,7 percent), Saarland (-5,3 percent) and Bavaria (-1,5 percent). The decline in Saxony is mainly due to a change in the reporting group. In social security there was a decline in debt levels of around one million euros (-1,1 percent) compared to the previous quarter.

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