German Draft

Budgetary Plan
2024

Staats
haus
German Draft
Budgetary Plan
2024

German Draft Budgetary Plan of the general government

(Federation, Länder, local authorities and social security
funds) in accordance with EU Regulation No 473/2013

October 2023
Contents
Public finances in Germany_______________________________________3

Forecast for public finances_______________________________________3

Basis for the present Draft Budgetary Plan 2024___________________6

Tables:

Table 1: General government budget balance and debt_______________________________________________ 4

Table 2: Government net primary expenditure trend_________________________________________________ 5
Table 3: Technical assumptions_____________________________________________________________________ 7
Table 4a: Macroeconomic prospects__________________________________________________________________ 8
Table 4b: Price developments – deflators_____________________________________________________________ 9
Table 4c: Labour market developments______________________________________________________________ 9
Table 4d: Sectoral balances__________________________________________________________________________ 10
Table 5a: General government budgetary targets broken down by subsector_________________________ 11
Table 5b: General government debt developments (Maastricht definition)___________________________ 12
Table 5c: GDP sensitivity of the general government budget balance projection_____________________ 12
Table 5d: Interest-rate sensitivity of the general government budget balance projection_____________ 12
Table 6: Expenditure and revenue projections under the no-policy-change scenario________________ 13
Table 7a: General government expenditure and revenue targets_____________________________________ 14
Table 7b: Amounts to be excluded from the expenditure benchmark________________________________ 14
Table 8: Discretionary measures at the general government level (including discretionary
measures at the federal level)______________________________________________________________ 15
Table 9: Divergence from April 2023 Stability Programme__________________________________________ 18
Table 10a: Impact of the Recovery and Resilience Facility (RRF) on the projection_____________________ 18
Table 10b: Guarantees________________________________________________________________________________ 19
Table 11: Implementation of the country-specific recommendations (CSRs) of 2023/2024____________ 21
Table 12: Methodological aspects___________________________________________________________________ 36
Public finances in Germany German Draft Budgetary Plan 2024

Public finances in Germany

Information on the Draft Budgetary Plan in accordance with Regulation (EU) No 473/2013 of the European
Parliament and of the Council of 21 May 2013 and in accordance with the related Code of Conduct

Status of the projections are based on the federal government’s spring pro-
jection on macroeconomic trends of April 2023.
Germany’s Draft Budgetary Plan 2024 presents the Once the federal government’s draft budget has
fiscal projections for the budgets of the Federation, been forwarded to the parliament, the executive
Länder, local authorities and social security funds branch’s responsibility for the budget prepara-
(including their off-budget entities) on the basis of tion process ends, and the legislative branch takes
current trends and planning. The projections were over. On 11 October 2023, while the parliamentary
issued on 28 September 2023. deliberations were under way, the federal govern-
ment published its autumn projection on macro-
Sources used as the basis for making the fiscal pro- economic trends. This projection could not be taken
jections include the 2023 federal budget of Decem- into account in the present Draft Budgetary Plan
ber 2022 as well as the draft 2024 federal budget and 2024. It will form the basis of the next tax estimate,
the fiscal plan to 2027, both of which were adopted the results of which are due to be issued on 26 Octo-
by the federal government in July 2023. ber 2023. These results will be taken into considera-
tion in the final parliamentary deliberations on the
The federal government’s budgetary and fiscal plan- 2024 federal budget. According to current plans, the
ning is based on the results of the Working Party on 2024 federal budget will be adopted by the German
Tax Revenue Estimates of May 2023, which, in turn, Bundestag on 1 December 2023.

Forecast for public finances

Gradual reduction of the general The deficit forecast for 2023 has improved signifi-
government deficit cantly since the last projection in April, from 4¼%
to 2½% of GDP. This is due primarily to a decline in
According to the projection, the general govern- the anticipated expenditures of the Economic Sta-
ment deficit will be 2½% of GDP in 2023, roughly bilisation Fund (Energy), which finances measures
the same as in 2022. The deficit is expected to be to mitigate the economic impact on households
reduced gradually in subsequent years. This return and businesses of high energy prices resulting
to fiscal normality is at the core of Germany’s fis- from Russia’s war of aggression against Ukraine.
cal policy strategy. The general government defi- The measures of the Economic Stabilisation Fund
cit is forecast to decline to 2% of GDP in 2024 and (Energy) were deliberately designed in such a way
to 1¼% of GDP by the end of the projection period, as to adapt automatically to contractually agreed
in line with the aim of a gradual and sustainable energy prices for end users – and thus to the eco-
consolidation. nomic environment.

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Forecast for public finances German Draft Budgetary Plan 2024

Table 1: General government budget balance and debt

2022 2023 2024 2025 2026 2027
in % of GDP
Budget balance -2.5 -2½ -2 -1½ -1¼ -1¼

Structural balance -1.8 -2 -1¾ -1½ -1¼ -1¼

Maastricht debt-to-GDP ratio 66.1 65¼ 64¾ 64¾ 64¾ 64¼

Figures for the projection period are rounded to quarter percentage points of GDP.

The fund’s expenditures are likely to be lower than Reduction of the debt-to-GDP
originally anticipated because energy price trends ratio
have been significantly more favourable than
expected. While in April, the fund’s spending for Germany’s return to fiscal normality is also
2023 was calculated at 3% of GDP, in line with the reflected in the Maastricht debt-to-GDP ratio. Hav-
budgeted amount, the projection presented here is ing stood at 66.1% in 2022, it is projected to decline
based on a technical assumption of approximately to 65¼% this year and to approximately 64¾% in
1¼% of GDP. Because future energy price trends 2024, after which the curve is expected to flatten
are uncertain and the relief measures are designed out. By the end of the projection period, the debt-
to adapt to price trends in a dynamic way, the esti- to-GDP ratio is forecast to be approximately 64¼%.
mated expenditures of the Economic Stabilisa-
tion Fund (Energy) – and thus the budget balances
for 2023 and 2024 – are subject to a high level of Reduction of the structural deficit
uncertainty. from 2024 onwards
The German government’s fiscal plan, on which The structural balance for 2023 (i.e. the fiscal bal-
the projection is based, complies with the national ance adjusted for cyclical and one-off effects) is
debt rule throughout the projection period. From projected to deteriorate slightly in year-on-year
2025 onwards, however, fiscal adjustments will be terms, to approximately -2% of GDP, even though,
necessary in order to remain below the regular as described above, the unadjusted fiscal balance
borrowing limit stipulated in Germany’s debt rule. is set to remain roughly unchanged. This dispar-
According to the federal government’s fiscal plan, ity is due to the fact that the 2022 structural bal-
these adjustments are calculated at approximately ance was adjusted to account for the capital inject-
0.1% of GDP per year in 2025, 2026 and 2027. With- ions into the energy companies Uniper and SEFE.
out the adjustments, the projected general budget This effect of more than €20bn is absent in 2023.
deficits for the years in question would be slightly
higher. The projection for 2024 shows an improvement of
the structural balance to -1¾% of GDP. The grad-
ual normalisation is expected to continue in sub-
sequent years, with the projected structural deficit
declining steadily in 2025 and 2026. The projected
structural deficit for 2026 and 2027 is 1¼% of GDP.

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Forecast for public finances German Draft Budgetary Plan 2024

Germany is complying with the Higher investments in areas that

rules of the Stability and Growth are crucial for the future
Pact
Investment levels have increased significantly in
In the 2020–2023 period, the quantitative require- recent years. According to the national accounts,
ments under the preventive arm of the Stabil- government gross fixed capital formation
ity and Growth Pact were suspended on the basis increased by 8.5% in 2022 compared with 2021, and
of the general escape clause. The 2024 country- by more than 20% compared with the pre-crisis
specific recommendations once again include year of 2019. Further increases are expected in the
quantitative targets. The European Commission coming years, with government gross fixed capi-
recommends that Germany should improve its tal formation predicted to increase by a geometric
structural balance by 0.3% of GDP. Based on the annual average rate of approximately 6% over the
projection presented here, Germany is more or less 2022–2027 period.
on track to meet this target, with an anticipated
reduction in the structural deficit of approxi- Government investment grants promote private
mately ¼% of GDP in 2024. investment, which makes up approximately 90%
of total investments. In 2022, investment grants
A net primary expenditure1) target was calcu- were more than 80% higher than they were in 2019,
lated on the basis of the target for improving the before the crisis. In the coming years, increases of
structural balance: according to the country- more than 5% per year are expected, as a geomet-
specific recommendations, net primary expendi- ric average.
tures must not increase by more than 2.5% in
nominal terms in 2024 compared with 2023. Ger-
many will most likely comply with this require-
ment, too, with projected net primary expenditure
growth of approximately 2¼% in 2024. In this way,
Germany is pursuing a prudent fiscal policy, in
line with the country-specific recommendations.

Table 2: Government net primary expenditure trends

2023 2024 2025 2026 2027
in %
Net primary expenditure growth rate 5¾ 2¼ 2¼ 2¾ 2¾
Figures are rounded to quarter percentage points.

1) Government spending, adjusted in particular for interest

expenditure and discretionary revenue measures.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Basis for the present Draft Budgetary Plan 2024

The Draft Budgetary Plan 2024 is based in particular on the following sources and information:

● Macroeconomic basis

• Federal government spring projection of 26 April 2023

• Results relating to the general government budget in the national accounts, published by the
Federal Statistical Office on 25 August 2023

● Results of the Working Party on Tax Revenue Estimates of 11 May 2023

● Budgetary plans

• Act Adopting the Federal Budget for the 2023 Fiscal Year (Gesetz über die Feststellung des
Bundeshaushaltsplans für das Haushaltsjahr 2023) of 19 December 2022
• Government draft of the Act Adopting the Federal Budget for the 2024 Fiscal Year and Fiscal
Plan to 2027 (Gesetz über die Feststellung des Bundeshaushaltsplans für das Haushaltsjahr 2024
und Finanzplan des Bundes bis 2027), adopted by the federal government on 5 July 2023
• Economic and fiscal plan of the special Climate and Transformation Fund, adopted by the
federal government on 9 August 2023

● Other legislation and measures in chronological order

• Act to Compensate for Inflation through a Fair Income Tax Schedule and to Modify
Additional Tax Regulations (Gesetz zum Ausgleich der Inflation durch einen fairen
Einkommensteuertarif sowie zur Anpassung weiterer steuerlicher Regelungen) of
8 December 2022
• 2022 Annual Tax Act (Jahressteuergesetz 2022) of 16 December 2022
• Eighth Act Amending the Local Public Transport Act and the Income Tax Act (Achtes Gesetz
zur Änderung des Regionalisierungsgesetzes und zur Änderung des Einkommensteuergesetzes)
of 16 December 2022
• Act Amending the Energy Duty Act and the Electricity Duty Act to Extend the “Equalisation
Scheme” (Gesetz zur Änderung des Energiesteuer- und des Stromsteuergesetzes zur
Verlängerung des sogenannten Spitzenausgleichs) of 19 December 2022
• Second Act to Improve Quality in and Access to Child Day Care (Zweites Gesetz zur
Weiterentwicklung der Qualität und zur Teilhabe in der Kindertagesbetreuung) of
20 December 2022
• Saxony’s Act on the Determination of the Tax Rate for Real Property Transfer Tax (Sächsisches
Gesetz über die Bestimmung des Steuersatzes bei der Grunderwerbsteuer) of 20 December 2022
• Ninth Act Amending the Local Public Transport Act (Neuntes Gesetz zur Änderung des
Regionalisierungsgesetzes) of 20 April 2023
• Government draft of a Fourth Act Amending the Federal Railways Expansion Act (Viertes
Gesetz zur Änderung des Bundesschienenwegeausbaugesetzes) of 7 June 2023
• Government draft of a Third Act Amending Toll Provisions (Drittes Gesetz zur Änderung
mautrechtlicher Vorschriften) of 14 June 2023

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

• Long-Term Care Support and Relief Act (Gesetz zur Unterstützung und Entlastung in der
Pflege) of 19 June 2023
• Act to Combat Supply Shortages of Off-Patent Medicines and to Improve the Supply
of Paediatric Medicines (Gesetz zur Bekämpfung von Lieferengpässen bei patentfreien
Arzneimitteln und zur Verbesserung der Versorgung mit Kinderarzneimitteln) of 19 July 2023
• Government draft of an Act Implementing Council Directive (EU) 2022/2523 on Ensuring
a Global Minimum Level of Taxation and Other Accompanying Measures (Gesetz zur
Umsetzung der Richtlinie (EU) 2022/2523 des Rates zur Gewährleistung einer globalen
Mindestbesteuerung und weiterer Begleitmaßnahmen) of 11 August 2023
• Government draft of a Budget Financing Act (Haushaltsfinanzierungsgesetz) of 16 August
2023
• Government draft of an Act Introducing Long-Term Block Grants for the Länder in
Connection with Refugee Flows and Amending the Wall Site Act (Gesetz zur Einführung einer
langfristigen Pauschalentlastung der Länder im Zusammenhang mit Fluchtmigration und zur
Änderung des Mauergrundstücksgesetzes) of 16 August 2023
• Government draft of an Act to Enhance Growth Opportunities, Investment, and
Innovation and to Simplify the Tax System and Increase Tax Fairness (Gesetz zur Stärkung
von Wachstumschancen, Investitionen und Innovation sowie Steuervereinfachung und
Steuerfairness) of 30 August 2023
• Government draft of an Act Introducing Basic Income Support for Children and Amending
Other Provisions (Gesetz zur Einführung einer Kindergrundsicherung und zur Änderung
weiterer Bestimmungen) of 27 September 2023
• Bundesrat decision on the Act Amending the Building Energy Act, the Heating Costs
Ordinance, and the Sweeping and Inspection Ordinance (Gesetz zur Änderung des
Gebäudeenergiegesetzes, zur Änderung der Heizkostenverordnung und zur Änderung der Kehr-
und Überprüfungsordnung) of 29 September 2023

Table 3: Technical assumptions

2022 2023 2024
Short-term interest rate (annual average in %) 0.70 3.90 3.70
Long-term interest rate (annual average in %) 1.20 2.30 2.30
USD/€ exchange rate (annual average) 1.18 1.07 1.07
Nominal effective exchange rate 106.70 107.00 107.50
World GDP growth rate (excluding EU) 3.40 3.20 3.30
EU GDP growth rate 3.70 0.80 1.60
Growth of German sales markets (% change yoy)1) 6.5 2½ 3
World import volumes (excluding EU) 6.10 2.30 2.90
Oil price (Brent, USD/barrel) 99.0 82 78
2023 and 2024: federal government spring projection on macroeconomic trends, April 2023.
1) Figures for the projection period are rounded to quarter percentage points.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 4a: Macroeconomic prospects

2022 2022 2023 2024 2025 2026 2027
ESA
code € billion Year-on-year change in %

1. Real GDP B1*g 3,274.9 1.8 0.4 1.6 0.8 0.8 0.8
2. Potential GDP1) 3,273.1 0.8 0.9 1.0 0.8 0.7 0.7
contributions
(percentage points):
- labour 0.1 0.2 0.2 -0.1 -0.2 -0.2
- capital 0.4 0.4 0.4 0.4 0.4 0.4
- total factor productivity 0.3 0.3 0.4 0.5 0.5 0.5
3. Nominal GDP (in €bn) B1*g 3,876.8 7.2 6.1 4.0 2.8 2.8 2.8
Components of real GDP
4. Private final consumption
P.3 106.4 3.9 -0.1 2.1
expenditure2)
5. Government final
P.3 119.3 1.6 -0.1 1.2
consumption expenditure
6. Gross fixed capital
P.51g 109.2 0.1 -1.0 1.3
formation
7.Changes in inventories and
P.52 +
net acquisition of valuables - 0.7 0.4 0.0
P.53
(% of GDP)
8. Exports of goods and services P.6 115.5 3.3 1.3 3.3
9. Imports of goods and services P.7 125.9 6.6 0.6 3.5
Contributions to real GDP growth in percentage points
10. Final domestic demand
- 2.3 -0.3 1.6
(excluding inventories)
11. Changes in inventories and P.52 +
- 0.7 0.4 0.0
net acquisition of valuables P.53
12. External balance of goods
B.11 - -1.2 0.4 0.0
and services
2022: Federal Statistical Office, August 2023.
2023 to 2027: federal government spring projection on macroeconomic trends, April 2023.
1) 2022 figure calculated as the difference between GDP (August 2023) and output gap (spring projection).
2) Including private non-profit organisations serving households.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 4b: Price developments – deflators

2022 2022 2023 2024 2025 2026 2027
Index Year-on-year change in %
(2015=100)

1. GDP 118.40 5.3 5.7 2.3 2.0 2.0 2.0

2. Private consumption expenditure1) 116.10 6.7 5.5 2.2
3. Government final consumption
119.70 5.1 2.6 2.8
expenditure
4. Gross investment 136.80 12.0 5.6 2.6
5. Exports 120.30 11.7 1.1 1.6
6. Imports 126.70 17.5 -0.8 1.7
2022: Federal Statistical Office, August 2023.
2023 to 2027: federal government spring projection on macroeconomic trends, April 2023.
1) Including private non-profit organisations serving households.

Table 4c: Labour market developments

2022 2022 2023 2024
ESA
code Level Year-on-year change in %

1. Employment, persons1) (in millions) 45.60 1.4 0.8 0.2

2. Employment, hours worked2) (in billions) 61.40 1.3 1.2 1.0
3. Unemployment rate3) (%) - 2.9 2.7 2.6
4. Labour productivity, persons4) 102.3 0.4 -0.4 1.4
5. Labour productivity, hours worked5) 106.5 0.5 -0.8 0.6
6. Compensation of employees (€ billion, domestic) D.1 2,019.8 5.5 6.5 5.5
7. Compensation per employee (€ thousand, domestic) 48.5 3.9 5.5 5.3
2022: Federal Statistical Office, August 2023.
2023 and 2024: federal government spring projection on macroeconomic trends, April 2023.
1) Occupied population, domestic concept, national accounts definition.
2) National accounts definition.
3) Unemployed (ILO) / economically active population.
4) Real GDP per person employed (domestic); 2015=100.
5) Real GDP per hour worked; 2015=100.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 4d: Sectoral balances

2022 2023 2024
ESA
code in % of GDP

1. Net lending/net borrowing vis-à-vis the rest of the world B.9 3.7 5.1 4.9
of which:
- Balance on goods and services 2.0 3.2 3.0
- Balance of primary incomes and transfers 2.4 2.2 2.1
- Capital account -0.7 -0.3 -0.2
2. Net lending/net borrowing of households B.9 5.6 5.0 5.3
3. Net lending/net borrowing of general government1) B.9 -2.5 -2½ -2
4. Statistical discrepancy - -
2022: Federal Statistical Office, August 2023.
2023 and 2024: federal government spring projection on macroeconomic trends, April 2023.
1) Figures for the projection period are rounded to quarter percentage points of GDP.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 5a: General government budgetary targets broken down by subsector

2023 2024 2025 2026 2027
ESA
code in % of GDP

Net lending (+) / net borrowing (-) (B.9) by subsector1)

1. General government S.13 -2½ -2 -1½ -1¼ -1¼
2. Central government S.1311 -2½ -1¾ -1¼ -1 -¾
3. State government S.1312 -¼ -¼ -¼ -¼ -¼
4. Local government S.1313 ¼ 0 0 0 0
5. Social security funds S.1314 0 0 0 -¼ -¼
General government (S.13)
6. Interest expenditure D.41 ¾ 1 1 1 1¼
7. Primary balance2) -1¾ -1 -½ -¼ ¼
8. One-off and other temporary measures3) 0 0 0 0 0
9. Real GDP growth (% change yoy) 0.4 1.6 0.8 0.8 0.8
10. Potential GDP growth (% change yoy) 0.9 1.0 0.8 0.7 0.7
contributions (percentage points):
- labour 0.2 0.2 -0.1 -0.2 -0.2
- capital 0.4 0.4 0.4 0.4 0.4
- total factor productivity 0.3 0.4 0.5 0.5 0.5
in % of potential GDP
11. Output gap -0.9 -0.3 -0.2 -0.1 0.0
12. Cyclical budgetary component -½ -¼ 0 0 0
13. Cyclically adjusted balance (1-12) -2 -1¾ -1½ -1¼ -1¼
14. Cyclically adjusted primary balance (13+6) -1¼ -¾ -¼ 0 ¼
15. Structural fiscal balance (13-8) -2 -1¾ -1½ -1¼ -1¼
Figures for the projection period are rounded to quarter percentage points of GDP.
Any discrepancies in totals are due to rounding.
1) TR - TE = B.9.
2) The primary balance is calculated as (B.9, item 1) plus (D.41, item 6).
3) A plus sign means deficit-reducing one-off measures.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 5b: General government debt developments (Maastricht definition)

2023 2024 2025 2026 2027
ESA
code in % of GDP

1. Gross debt 65¼ 64¾ 64¾ 64¾ 64¼

2. Change in gross debt ratio -¾ -½ 0 0 -½
Contribution to changes in gross debt
3. Primary balance 1¾ 1 ½ ¼ -¼
4. Interest expenditure D.41 ¾ 1 1 1 1¼
5. Stock-flow adjustment -3¼ -2½ -1½ -1¼ -1¾
p.m.:
1 1½ 1¾ 1¾ 2
Implicit interest rate on debt1)
Figures for the projection period are rounded to quarter percentage points of GDP.
Any discrepancies in totals are due to rounding.
1) Proxied by interest expenditure divided by the debt level of the previous year.

Table 5c: GDP sensitivity of the general government budget balance projection
2022 2023 2024 2025 2026 2027

General government budget balance in % of GDP

GDP trends according to

– Baseline scenario -2.5 -2½ -2 -1½ -1¼ -1¼
– Alternative scenarios
Real GDP, rate of change -½ percentage point p.a.
-2¾ -2½ -2¼ -2¼ -2½
compared with baseline scenario
Real GDP, rate of change +½ percentage point p.a.
-2¼ -1½ -¾ -¼ 0
compared with baseline scenario
Figures for the projection period are rounded to quarter percentage points of GDP.

Table 5d: Interest-rate sensitivity of the general government budget balance projection
2022 2023 2024 2025 2026 2027

General government budget balance in % of GDP

Interest rate trends according to

– Baseline scenario -2.5 -2½ -2 -1½ -1¼ -1¼
– Alternative scenarios
Interest rate +50 basis points p.a. compared with
-2½ -2 -1¾ -1½ -1¼
baseline scenario
Interest rate -50 basis points p.a. compared with
-2½ -1¾ -1½ -1¼ -1
baseline scenario
Figures for the projection period are rounded to quarter percentage points of GDP.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 6: Expenditure and revenue projections under the no-policy-change scenario*

2023 2024
ESA
General government (S.13) Code in % of GDP

1. Total revenue at unchanged policies* TR 46¼ 46½

of which:
1.1. Taxes on production and imports D.2 10½ 10¾
1.2. Current taxes on income, wealth, etc. D.5 13¼ 13¼
1.3. Capital taxes D.91 ¼ ¼
1.4. Social contributions D.61 17¼ 17½
1.5. Property income D.4 ½ ½
1.6. Other 1)
4½ 4¼
p.m.:
Tax burden 41 41¾
(D.2+D.5+D.61+D.91-D.995)2)
2. Total expenditure with no change in policies* TE3) 47¼ 47½
of which:
2.1. Compensation of employees D.1 7¾ 8
2.2. Intermediate consumption P.2 5¾ 6
2.3. Social payments D.62 + D.632 24¾ 24¾
of which:
1½ 1½
Unemployment benefits4)
2.4. Interest expenditure D.41 ¾ 1
2.5. Subsidies D.3 1¼ 1¼
2.6. Gross fixed capital formation P.51 2¾ 3
2.7. Capital transfers D.9 2 1¾
2.8. Other 5)
2¼ 2
* The projections under the no-policy change scenario represent the anticipated revenue and expenditure excluding the discretionary
measures shown in Table 8.
1) P.11 + P.12 + P.131 + D.39rec + D.7rec + D.9rec (other than D.91rec).
2) Including those collected by the EU and including an adjustment for uncollected taxes and social contributions (D.995), if appropriate.
3) TR - TE = B.9.
4) Includes social benefits other than social transfers in kind (D.62) and social transfers in kind via market producers (D.632) related to
unemployment benefits.
5) D.29pay + D.4pay (other than D.41pay) + D.5pay + D.7pay + P.52 + P.53 + NP + D.8.
Figures for the projection period are rounded to quarter percentage points of GDP.
Any discrepancies in totals are due to rounding.

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Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 7a: General government expenditure and revenue targets

2023 2024
ESA
General government (S.13) code in % of GDP

1. Total revenue TR 46 46½

of which:
1.1. Taxes on production and imports D.2 10½ 10¾
1.2. Current taxes on income, wealth, etc. D.5 13 13
1.3. Capital taxes D.91 ¼ ¼
1.4. Social contributions D.61 17¼ 17¾
1.5. Property income D.4 ½ ½
1.6. Other 1)
4½ 4½
p.m.:
41 41½
Tax burden (D.2+D.5+D.61+D.91-D.995)2)
2. Total expenditure target TE3) 48½ 48¼
of which:
2.1. Compensation of employees D.1 7¾ 8
2.2. Intermediate consumption P.2 5¾ 6
2.3. Social payments D.62 + D.632 24¾ 24¾
of which:
1½ 1½
Unemployment benefits4)
2.4. Interest expenditure D.41 ¾ 1
2.5. Subsidies D.3 2¼ 1½
2.6. Gross fixed capital formation P.51 2¾ 3
2.7. Capital transfers D.9 2 2¼
2.8. Other 5)
2¼ 2
1) P.11 + P.12 + P.131 + D.39rec + D.7rec + D.9rec (other than D.91rec).
2) Including those collected by the EU and including an adjustment for uncollected taxes and social contributions (D.995), if appropriate.
3) TR - TE = B.9.
4) Includes social benefits other than social transfers in kind (D.62) and social transfers in kind via market producers (D.632) related to
unemployment benefits.
5) D.29pay + D.4pay (other than D.41pay) + D.5pay + D.7pay + P.52 + P.53 + NP + D.8.
Figures for the projection period are rounded to quarter percentage points of GDP.
Any discrepancies in totals are due to rounding.

Table 7b: Amounts to be excluded from the expenditure benchmark

2022 2022 2023 2024

€bn in % of GDP

1. Expenditure on EU programmes fully matched by EU funds revenue 8.9 0.2 ¼ ¼

2. Cyclical unemployment benefit expenditure -1.8 0.0 -¼ -¼
3. Effect of discretionary revenue measures -27.7 -0.7 -¼ ½
4. Revenue increases mandated by law 0.0 0.0 0 0
Figures for the projection period are rounded to quarter percentage points of GDP.

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 Table 8: Discretionary measures at the general government level (including discretionary measures at the federal level)
ESA 2023 2024 2025 2026 2027
List of new measures* Detailed description Adoption status / entry into force
code Budgetary impact (in % of GDP)
Act to Reduce Bracket Creep Increase in the basic personal D.51 Entry into force on different dates -0.16 -0.32 -0.34 -0.34 -0.34
to Ensure a Fair Income Tax allowance, adjustment of for different provisions
Schedule and Modify Additional tax bracket thresholds, child
Tax Regulations (Gesetz zum benefit increase, increase in tax
Abbau der kalten Progression für allowances for children, increase
einen fairen Einkommensteuertarif in the maximum deduction rate
sowie zur Anpassung weiterer for maintenance payments
steuerlicher Regelungen)1)
Creation of a capital stock to Creation of a “generational capital F.51 With the implementation of the legislation -0.24
Basis for the present Draft Budgetary Plan 2024

stabilise the rise of contributions fund” to bolster the statutory for the generational capital fund
in the statutory pension insurance pension insurance system
system (pension reserve fund)2) using capital market yields
Economic defence shield With the entry into force of the 2023 Budget Act -1.2 -0.5
to mitigate the impact of (Haushaltsgesetz 2023) on 1 January 2023
Russia’s war of aggression3) of which:

Financing the gas price brake D.31 -0.5 -0.2

15
Liquidity and grants for the D.31 -0.5 -0.2
electricity price brake
Financing further D.31 -0.2 -0.1
support measures and
compensation payments
Government holdings in the D.99 0.0
area of gas and energy supply
Long-Term Care Support Increase of 0.35 percentage D.61, 1 July 2023 0.06 0.13 0.09 0.09 0.08
and Relief Act (Gesetz points in the contribution rate D.62,
zur Unterstützung und in the long-term care insurance D.63
Entlastung in der Pflege)4) system as of 1 July 2023, increase
of 5% in long-term care benefit
and payments for benefits in kind
for people receiving care in their
own homes as of 1 January 2024
German Draft Budgetary Plan 2024
 Table 8: continuation
ESA 2023 2024 2025 2026 2027
List of new measures* Detailed description Adoption status / entry into force
code % of GDP
Government draft of a Third CO2-based toll structure for P.13 1 December 2023 0.01 0.17 0.18 0.17 0.17
Act Amending Toll Provisions HGVs, expansion of the toll to
(Drittes Gesetz zur Änderung cover vehicles with a technically
mautrechtlicher Vorschriften)5) permissible maximum laden
mass of more than 3.5 tonnes
Enhancing security, defence and Support for Ukraine in the form of D.92 With the entry into force of the 2023 -0.04 -0.08 -0.08 -0.08 -0.08
stability in partner countries6) – military equipment, replacement Budget Act on 1 January 2023 and the
here: changes compared with of Bundeswehr materials that adoption of the 2024 federal budget
the 2023 government draft were provided to Ukraine, German
Basis for the present Draft Budgetary Plan 2024

contributions to the European

Peace Facility (EPF), bilateral
capacity-building projects
Government draft of an Act to Introduction of an investment D.51 Entry into force on different dates -0.06 -0.18 -0.22 -0.16
Enhance Growth Opportunities, premium to promote the for different provisions
Investment, and Innovation and transformation of the economy
to Simplify the Tax System and towards more climate action in
Increase Tax Fairness (Gesetz zur particular, increase tax incentives
Stärkung von Wachstumschancen, for research, and improve the

16
Investitionen und Innovation tax rules for loss deductions
sowie Steuervereinfachung
und Steuerfairness)7)
Additional measures for future Support for efficient D.92 Upon adoption of the 2024 federal budget -0.01 -0.18 -0.23 -0.09
technologies and climate buildings, financing of the
action via the Climate and Renewable Energy Sources Act
Transformation Fund (KTF)8) (Erneuerbare-Energien-Gesetz),
transformation programmes in
the area of microelectronics and
transformational technologies,
hydrogen strategy and
decarbonisation of industry
German Draft Budgetary Plan 2024
 Table 8: continuation
* Compared with the Finance Ministry forecast of October 2022

1) The figures show the expansion of relief measures for taxpayers adopted in the parliamentary procedure, compared with the federal government’s draft act of 14 September 2022. For details (in
German), please see: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Schlaglichter/Entlastungen/inflationsausgleichsgesetz.html
2) Affects debt-to-GDP ratio only. For details (in German), please see: https://www.bundesfinanzministerium.de/Web/DE/Themen/Internationales_Finanzmarkt/Generationenkapital/generationen
kapital.html
3) Technical assumptions, as of 30 August 2023. For details (in German), please see: https://www.bundesfinanzministerium.de/Content/DE/Downloads/Schlaglichter/Entlastungen/
abwehrschirm-gegen-folgen-des-russischen-angriffskrieges.pdf?__blob=publicationFile&v=5
4) For details (in German), please see: https://www.bundesgesundheitsministerium.de/service/gesetze-und-verordnungen/detail/pflegeunterstuetzungs-und-entlastungsgesetz-pueg.html
5) For details (in German), please see: https://bmdv.bund.de/SharedDocs/DE/Gesetze-20/entwurf-eines-dritten-gesetzes-aenderung-mautrechtlicher-vorschriften.html?nn=508840
6) For details of the government draft of the 2024 federal budget and the fiscal plan to 2027 (in German), please see: https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Fi-
nanzpolitik/2023/07/2023-07-05-regierungsentwurf-bundeshaushalt-2024.html
7) For details (in German), please see https://www.bundesfinanzministerium.de/Content/DE/Gesetzestexte/Gesetze_Gesetzesvorhaben/Abteilungen/Abteilung_IV/20_Legislaturperiode/
2023-09-08-WtChancenG/0-Gesetz.html
Basis for the present Draft Budgetary Plan 2024

8) What is shown here is the change in the Climate and Transformation Fund’s programme expenditure based on the 2023 Budget Act and the government draft for 2024, compared with the
government draft for 2023. For details (in German), please see: https://www.bmwk.de/Redaktion/DE/Pressemitteilungen/2023/08/20230809-bundeskabinett-beschliesst-wirtschaftsplan-des-ktf.
html

17
German Draft Budgetary Plan 2024
Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 9: Divergence from April 2023 Stability Programme

ESA 2022 2023 2024
Code
Target general government net lending/net borrowing (in % of GDP) B.9
Stability Programme – April 2023 -2.6 -4¼ -1¾
Draft Budgetary Plan -2.5 -2½ -2
Difference 0.1 1¾ -¼
General government net lending/net borrowing projection at
unchanged policies* (in % of GDP)
Stability Programme – April 2023 -2.6 -1 -¾
Draft Budgetary Plan - -1 -1
Difference - 0 -¼
Figures for the projection period are rounded to quarter percentage points of GDP.
Any discrepancies in totals are due to rounding.
* The projections under the no-policy change scenario represent the anticipated revenue and expenditure excluding the discretionary
measures shown in Table 8.

Table 10a: Impact of the Recovery and Resilience Facility (RRF) on the projection - grants
2020 2021 2022 2023 2024 2025 2026
Revenue from RRF grants (in % of GDP)
RRF grants as included in the revenue projections 0.00 0.18 0.10 0.12 0.11 0.09 0.06
Cash disbursements of RRF grants from EU 0.00 0.06 0.00 0.10 0.31 0.08 0.08
Expenditure financed by RRF grants (in % of GDP)
Total current expenditure 0.00 0.11 0.05 0.04 0.02 0.01 0.01
Gross fixed capital formation (P.51g) 0.01 0.00 0.00 0.00 0.00 0.00 0.00
Capital transfers (D.9) 0.00 0.05 0.05 0.07 0.08 0.07 0.04
Total capital expenditure 0.02 0.05 0.05 0.08 0.08 0.07 0.04
Other costs financed by RRF grants (in % of GDP)
Reduction in tax revenue 0.00 0.00 0.00 0.00 0.00 0.01 0.01
Other costs with impact on revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Financial transactions

Any discrepancies in totals are due to rounding.

18
Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 10b: Guarantees

Entry into force of Guarantee
Description Utilisation
legislation framework
in % of GDP
In response to the COVID-19 pandemic
Federation: guarantees under the Budget Act
(Haushaltsgesetz), here: expansion of guarantee frame-
retroactively from
work (following entry into force of the first supplemen- 6.4
1 January 2022
tary budget for 2020) in the 2022 Budget Act pursuant
to section 3 (1) sentence 1 no...1)
1. Exports (export guarantees) 0.1
2. Loans to foreign debtors, foreign direct investment,
0.1
EIB loans
3. Financial cooperation projects 0.1
4. Market regulation and stockpiling measures 0.0
5. Domestic guarantees 5.9
6. International financing institutions 0.3
7. Treuhandanstalt successor organisations 0.0
8. Interest compensation guarantees 0.0
Federation: Guarantees under other laws
Guarantees under the Act on the Assumption of
Guarantees within the Framework of the European
Instrument for Temporary Support to Mitigate 10 July 2020 0.2 0.2
Unemployment Risks in an Emergency (SURE)
(SURE-Gewährleistungsgesetz)
German contribution to the Pan-European Guarantee
20202) 0.1 0.1
Fund
Federation: Guarantees by special funds
Guarantees by the Economic Stabilisation Fund under 28 March 20204) 2.6 0.0
section 21 of the Stabilisation Fund Act
(Stabilisierungsfondsgesetz)3)
Länder: Expansion of guarantee framework provided
tbd 2.0 0.0
by the Länder
Other federal guarantees
Federation: Total guarantees under the Budget Act
1 January 2020 23.4 16.1
pursuant to section 3 (1) sentence 1 no...5)
1. Exports (export guarantees) 3.9 3.1
2. Loans to foreign debtors, foreign direct investment,
1.6 1.0
EIB loans
3. Financial cooperation projects 1.0 0.8
4. Market regulation and stockpiling measures 0.0 0.0
5. Domestic guarantees 14.2 8.8
6. International financing institutions 2.3 2.0
7. Treuhandanstalt successor organisations 0.0 0.0
8. Interest compensation guarantees 0.4 0.4

19
Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 10b: continuation

Entry into force of Guarantee
Description Utilisation
legislation framework
in % of GDP
Federation: guarantees under other laws
Guarantees for loans to Greece under the Act on
Financial Stability within the Monetary Union 7 May 2010 0.6 0.6
(Währungsunion-Finanzstabilitätsgesetz)
Guarantees under the Act on the Assumption of
Guarantees within the Framework of a European
Stabilisation Mechanism (Gesetz zur Übernahme von 23 May 20106) 5.5 2.3
Gewährleistungen im Rahmen eines europäischen
Stabilisierungsmechanismus)
Travel Insolvency Fund 25 June 2021 0.0 0.0
Federation: guarantees by special funds
Guarantees by the Federal Railways Fund
0.0 0.0
(Bundeseisenbahnvermögen)
Guarantees by the ERP Special Fund 0.1 0.1
Guarantees by the Financial Stabilisation Fund under
18 October 20087) 10.4 0.0
sections 6 and 8a of the Stabilisation Fund Act
1) Utilisation levels can be shown only for total guarantees under the Budget Act (see below).
2) Decision by EIB Board of Directors: 26 May 2020; date of Germany’s signature confirming participation in fund: 7 July 2020
3) As of 31 December 2022 (for both guarantee framework and utilisation level)
4) Reduced to €100bn under the Act Amending the Stabilisation Fund Act and the Economic Stabilisation Acceleration Act (Gesetz zur
Änderung des Stabilisierungsfondsgesetzes und des Wirtschaftsstabilisierungsbeschleunigungsgesetzes) of 20 December 2021
5) Including the expansion of the guarantee framework cited above
6) Entry into force of most recent amendment: 1 June 2012
7) Entry into force of most recent amendment: 29 December 2020
Utilisation levels as of 31 December 2022 (except where otherwise specified)

20
 Table 11: Implementation of the country-specific recommendations (CSRs) of 2023/2024
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 1: In 2023,
maintain neutral policy stance, Status and
expand investment, pursue a fiscal Title of measure Description and direct relevance to target timetable
policy aimed at achieving prudent
medium-term fiscal positions
1.11) Phase out the energy Energy support The electricity, gas and heating price brakes financed by the Economic Stabilisation The energy price
support measures by the end of measures (Economic Fund (Energy), which are temporary by design, are helping to cushion price spikes brakes will be phased
2023 and use the related savings Stabilisation Fund and mitigating the impact of higher energy costs for consumers. They are specifically out by the end of
Basis for the present Draft Budgetary Plan 2024

to reduce public deficit. (Energy), support designed to maintain market incentives to save energy, as price signals remain 2024 at the latest.
packages) undistorted. The energy price brake subsidies vary depending on the contractually
agreed end-consumer prices for energy. This means that effective fiscal costs are
reduced if, and to the extent that, the contractually agreed energy prices fall. Thanks
to their flexible adaptation to market conditions, which has been deliberately built
into the price brakes’ design, this central relief instrument remains cost-efficient
and in line with the goal of fiscal stability. Energy price brake payments have been
significantly lower in 2023 and have continued to decline over the course of the year.

21
Reduce the The general government deficit is expected to remain more or less unchanged at 2024
public deficit around 2½% of GDP in 2023 before decreasing to around 2% of GDP in 2024, partly
due to the phasing out of energy support measures, especially the energy price brakes.
1.2 If renewed energy price increases
require the implementation of
support measures, these should be
targeted at protecting vulnerable
households and companies, be
fiscally affordable, and maintain
incentives to save energy.
1.3 Ensure prudent fiscal policy, in The federal govern- The federal government is continuing to pursue a prudent fiscal policy with a
particular by limiting the nominal ment’s fiscal policy core focus on fiscal resilience. In order to maintain fiscal capacity in the event
increase in nationally-financed of future crises, and in light of the major medium-term challenges facing the
net primary expenditure in German economy, the general government deficit and the debt-to-GDP ratio
2024 to not more than 2.5%. will be gradually reduced over the coming years. This approach marks a return
to fiscal normality, which is reflected in the draft federal budget for 2024.
In addition, the federal government is pursuing a supply-side economic
and fiscal policy aimed at kick-starting self-sustaining economic
growth and preventing additional inflationary pressures.
German Draft Budgetary Plan 2024

1) The CSRs have been subdivided for reasons of clarity; the subdivisions are not part of the official CSRs.
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 1: In 2023,
maintain neutral policy stance,
expand investment, pursue a Status and
Title of measure Description and direct relevance to target
fiscal policy aimed at achieving timetable
prudent medium-term fiscal
positions
Net primary Germany expects to comply with the recommendation regarding net primary 2024
Basis for the present Draft Budgetary Plan 2024

expenditure expenditure growth, with growth of approximately 2¼% projected for 2024.
1.4 Preserve nationally-financed 2023 federal budget; Investment levels have increased significantly in recent years. According to The draft 2024 federal
public investment and ensure draft 2024 federal the national accounts, government gross fixed capital formation increased by budget and medium-
the effective absorption of RRF budget and medium- 8.5% in 2022 compared with 2021, and by more than 20% compared with the term fiscal plan to
grants and other EU funds, in term fiscal plan to 2027 pre-crisis year of 2019. Further increases are expected in the coming years, 2027 were adopted
particular to foster the green with a projected annual increase of 6%, as a geometric average, in the period by the federal cabinet
and digital transitions. 2022–2027. In addition to government investment, investment grants also play in July 2023. The
an important role. The level of investment grants is well above the pre-crisis federal budget is due
level in 2019 and a further significant increase is expected in the coming years, to be approved by the

22
in particular through the Climate and Transformation Fund (see below). Bundestag on
1 December 2023.
The federal government’s ongoing commitment to investing in the future is
also reflected in the federal budget and the fiscal plan. Despite the significant
fiscal burden of Russia’s war of aggression against Ukraine and the sharp
rise in interest expenditure, the federal budget and the fiscal plan include
investment spending (according to the budgetary definition) of well over
€50bn a year in all years – far above the pre-crisis level of €38bn in 2019.
Climate and The federal budget will be supplemented in the period 2023 to 2027 2023–2027
Transformation Fund by the Climate and Transformation Fund’s programme expenditures
of almost €250bn. Some of these programme expenditures provide
strong investment incentives for the private sector.
Further detailed information on how the Climate and Transformation
Fund is being used can be found in the Federal Ministry of Finance’s
2024 financial report (pp. 51-52), which is available at:
https://www.bundesfinanzministerium.de/Content/DE/Downloads/
Broschueren_Bestellservice/finanzbericht-2024.pdf?__blob=publicationFile&v=5
German Draft Budgetary Plan 2024
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 1: In 2023,
maintain neutral policy stance,
expand investment, pursue a Status and
Title of measure Description and direct relevance to target
fiscal policy aimed at achieving timetable
prudent medium-term fiscal
positions
Measures to promote As part of the joint task “Improvement of regional economic structures”, the Ongoing
Basis for the present Draft Budgetary Plan 2024

local authority federal government and the Länder are supporting measures such as the expansion
investment of local business-related infrastructure. This also applies to 2023 and 2024.
DARP component 6.2.2. Within the framework of the DARP, the consultancy firm “PD - Berater der Until 2026
öffentlichen Hand GmbH” is tasked by the federal government with helping local
authorities, in particular, to integrate funding into public investment projects. This
can boost public investment activity overall and at the same time strengthens the
public administration’s project management capabilities. Findings that can be applied
more generally are incorporated into guidelines for improving funding programmes.

23
Ensure the effective An initial payment request for €4.37bn (€3.97bn net, taking EU bodies now have
absorption of into account the prepayment that was already made in 2021) to review and reach
RRF grants was submitted by Germany on 15 September 2023. a decision on the
request. A payment
at the end of 2023
is expected.
Ensure the effective The federal programme ESF Plus 2021–2027, which was approved by Status: ongoing
absorption of the Commission in May 2022, is set to include a total of 28 individual
other EU funds ESF Plus programmes. By October 2023, 25 of these projects had Funding period
been launched and 28 proposals had been published. 2021–2027

1.5 Implement public investment Special fund for The special fund for the Bundeswehr provides a one-time allocation The fund is currently
initiatives as planned. For the period the Bundeswehr of €100bn to maintain and strengthen Germany’s defence and alliance expected to be
beyond 2024, continue to pursue capabilities in the coming years. The special fund will be deemed dissolved fully disbursed by
a medium-term fiscal strategy of on 31 December of the year when its line of credit is fully used up. the end of 2027.
gradual and sustainable consolidation,
Medium-term According to the federal government’s projection, the general government 2023–2027
combined with investments and
fiscal strategy deficit will continue to be reduced incrementally in the coming years.
reforms conducive to higher
It is expected to decline from 2½% of GDP in 2023 to 2% of BIP in
sustainable growth, to achieve a
2024, 1½% of GDP in 2025, and 1¼% of GDP in 2026 and 2027.
prudent medium-term fiscal position.
German Draft Budgetary Plan 2024
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 1: In 2023,
maintain neutral policy stance,
expand investment, pursue a Status and
Title of measure Description and direct relevance to target
fiscal policy aimed at achieving timetable
prudent medium-term fiscal
positions
Growth The Growth Opportunities Act enhances the German economy’s The draft Growth
Basis for the present Draft Budgetary Plan 2024

Opportunities Act competitiveness and growth potential. The legislation contains a range of Opportunities Act
measures that improve business liquidity and provide incentives for more was adopted by the
(Wachstums- investment and innovation. It will help companies overcome crisis-related federal cabinet on
chancengesetz) challenges and also constitutes a step towards a supply-side tax policy. 30 August 2023.
Key measures include improved rules for loss deductions and the renewal of Timeline going
accelerated depreciation options for movable assets. Both of these instruments are forward:
necessary in light of structural challenges and the current weakness of the economy.
These are measures that will give a direct boost to economic competitiveness Bundesrat (first
because they provide stronger incentives for more investment and innovation passage):

24
in Germany. They take a targeted approach rather than offering blanket relief. 20 October 2023
They reduce the effective tax burden, which in turn will have a positive impact Bundestag (first
on investment decisions as well as decisions about where to do business. reading):
12 October 2023
Bundestag (second
and third readings):
17 November 2023
Bundesrat (second
passage):
15 December 2023
Financing for the The Financing for the Future Act aims to provide key support to mobilise more The draft Financing
Future Act private capital, make Germany a stronger magnet for the financial sector, and lift for the Future Act
Germany’s capital market to the next level. The legislation pursues a comprehensive was adopted by the
(Zukunftsfinanzierungs- approach with measures that target the three overarching priorities of (a) federal cabinet on
gesetz) modifying financial market legislation, (b) further developing company law and (c) 16 August 2023.
improving tax law provisions. In the areas of financial market and company law
legislation, this includes (a) reduced minimum capital requirements, (b) the option The bill’s first reading
to introduce multiple-vote shares and (c) rules to facilitate capital increases. in the Bundestag
took place on 21
September 2023, and
German Draft Budgetary Plan 2024

its first passage in the

Bundesrat took place
on 29 September 2023.
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 1: In 2023,
maintain neutral policy stance,
expand investment, pursue a Status and
Title of measure Description and direct relevance to target
fiscal policy aimed at achieving timetable
prudent medium-term fiscal
positions
Measures to promote further digitalisation and internationalisation and to The second and
Basis for the present Draft Budgetary Plan 2024

further reduce red tape will make the German financial market more attractive third readings in the
and strengthen Germany’s position as a magnet for business – for both domestic Bundestag will take
and international companies and investors. The legislation also contains key place on 17 November.
tax provisions that aim to promote employee share ownership, including (a) an
increase in the annual tax allowance for employee shares (from €1,440 to €5,000) The second
and (b) new options that allow start-ups and high-growth companies and their deliberation in the
employees to benefit from deferred taxation rules on employee shares. Bundesrat will take
place on 15 December.
Act and Ordinance By making it easier for skilled workers to immigrate to Germany, Entering into force

25
on the Further the federal government is addressing the country’s skilled labour incrementally between
Development of Skilled shortage and thereby helping to boost economic growth. A continuous 18 November 2023
Migration increase in the immigration of skilled workers is also vital to ensure the and 1 June 2024
(Gesetz und Verordnung sustainability and viability of Germany’s social security systems.
zur Weiterentwicklung
der Fachkräfte- Assuming that the additional skilled workers who immigrate to Germany
einwanderung) as a result of this legislation will (a) earn the same, on average, as people
already working in an equivalent job and (b) be required to pay social
security contributions, this would result in additional annual social security
revenues of approximately €164m per 10,000 additional employees.
1.6 Improve the tax mix for more Citizen’s benefit The basic allowance for young citizen’s benefit recipients up to the age of 25 These provisions
inclusive and sustainable growth, in (Bürgergeld): Increased who are in education, training or doing voluntary service has been raised to the entered into force
particular by improving tax incentives basic allowance for minimum income limit of €520, and the allowance for citizen’s benefit recipients on 1 July 2023.
in order to increase hours worked. school and university who earn between €520-1,000 per month has been increased from 20% to 30%.
students, trainees and This gives young people and citizen’s benefit recipients more of an incentive to take
volunteers; increased on jobs subject to social security contributions or to extend the hours they work.
allowances for benefit
recipients who are
gainfully employed
German Draft Budgetary Plan 2024
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 1: In 2023,
maintain neutral policy stance,
expand investment, pursue a Status and
Title of measure Description and direct relevance to target
fiscal policy aimed at achieving timetable
prudent medium-term fiscal
positions
For spouses: To enhance mutual responsibility between spouses, Germany’s governing To implement this
Basis for the present Draft Budgetary Plan 2024

replacement of tax parties declared in their coalition agreement that the combination of tax objective in law, the
class combination classes III and V for spouses would be replaced with the factor-based Federal Ministry of
III and V with the method under tax class IV. This will make it possible to distribute the tax Finance is working
factor-based method burden between spouses more evenly, based on each individual’s own wages, on legislative
under tax class IV which in turn will provide low-income earners and second earners with a amendments. These
stronger incentive to enter employment or increase their working hours. are to be included
in an upcoming tax
legislation initiative.
1.7 Safeguard the long-term Pensions Package II The Pensions Package II includes a “generational capital fund” that aims to The federal

26
sustainability of the pension system. (Rentenpaket II); expand the funding base for the statutory pension insurance system while government is
reforms to the simultaneously stabilising pension levels over the long term. In addition to currently in the process
occupational and regular pension contributions and federal subsidies, proceeds from the capital of deliberating on
private pension systems fund – which will be managed by a public body – will help secure long-term and preparing draft
financing for the statutory system. By financing part of the statutory system, legislation, and aims
the fund will help to mitigate future increases in pension contribution rates. to submit legislative
proposals by the
In addition, the federal government plans to enact legislation that will beginning of 2024.
strengthen the occupational and private pension systems. The legislative
process will take recommendations into account that were put forward in
the first half of 2023 by an “expert group on occupational pensions” and a
“focus group on private pensions” whose members included representatives
from social partners, associations and the research community.
One of the shared objectives of these three initiatives is to make greater
use of the opportunities presented by international capital markets in
order to safeguard the long-term sustainability of pension systems.
German Draft Budgetary Plan 2024
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 2:
Proceed with implementation
of recovery and resilience plan, Status and
Title of measure Description and direct relevance to target
finalise the negotiations with the timetable
Commission on the 2021–2027
cohesion policy programming
2.1 Significantly accelerate the Implementation of Germany is making progress in implementing the DARP. The following completed Germany plans to
Basis for the present Draft Budgetary Plan 2024

implementation of its revised the recovery and objectives can be highlighted as examples: To promote electric mobility, charging submit its second
recovery and resilience plan, also by resilience plan (DARP) infrastructure for electric vehicles has been expanded, and the 10-year tax and third payment
ensuring sufficient resources, and exemption for all-electric vehicles has been adopted. In the area of education requests in 2024.
swiftly finalise the addendum and the policy, teachers have been provided with an extensive range of mobile devices
REPowerEU chapter with a view to such as laptops. Hydrogen projects, including the expansion of green hydrogen
rapidly starting its implementation. production facilities with over 2 GW of electrolysis capacity, are making progress. The
programme to promote climate-friendly timber construction supports innovation
clusters and consultancy activities, with the aim of expediting development.
RePowerEU Germany will draw down the approximately €2.3bn in Interministerial con-

27
allocated funding from the RePowerEU initiative. sultations on specific
measures to promote
renewable energy and
improve energy efficien-
cy are ongoing. Germa-
ny plans to submit its
funding request to the
Commission by the end
of November 2023.
2.2 Proceed with the speedy German cohesion The 56 programmes in the 2021-2027 programming period (totalling €23.3 billion) Status: ongoing
implementation of cohesion policy programmes in were approved in 2022 and most are now being implemented. Implementation
policy programmes, in close the European Regional chiefly by the Länder (except for ESF+ federal programme and EMFAF). Some Programmes must be
complementarity and synergy with Development Fund calls for proposals have been launched, some are under preparation. completed by 2029,
the recovery and resilience plan. (ERDF), Just Transition i.e. two years after the
Fund (JTF), European The structural funds and the Recovery and Resilience Facility complement one end of the program-
Social Fund Plus another in the rebuilding of Europe’s economy. In terms of the interaction of the ming period (n+2 rule).
(ESF+), European structural funds and the Recovery and Resilience Plan, it is possible either to fence
Maritime, Fisheries off the individual structural funds via the GRRP or to mutually complement them.
and Aquaculture Fund The programming authorities undertook coherence and compatibility checks in the
(EMFAF) and Interreg programming phase to see whether it makes sense for the structural fund programmes
to complement the GRRP and whether there will be any negative repercussions,
German Draft Budgetary Plan 2024

e.g. in terms of fund absorption. The dialogue between the Federation and the
Länder is continued in the context of the ongoing implementation of the structural
funds in order to further progress complementarity, synergies and coherence.
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 3:
Remove barriers to investment Status and
Title of measure Description and direct relevance to target
and promote digital communica- timetable
tions networks
3.1 Speed up the digitalisation of the Implementation of the The Online Access Act entered into force in 2017 and states that all relevant Implementation of the
entire service chain for public services Online Access Act by administrative services provided by the Federation and the Länder, including Online Access Act by
and improve people’s digital skills. the Federation, Länder their municipalities, must also be offered online. Hundreds of administrative the Federation, Länder
and municipalities; services offered by the Federation and the Länder are therefore being and municipalities;
Basis for the present Draft Budgetary Plan 2024

adoption of the digitalised in the course of implementing the act. Numerous services (a total adoption of the
Act Amending the exceeding 200 services covered by the act) can already be applied for online Act Amending the
Online Access Act across the country, e.g. applications for federal educational assistance, child Online Access Act.
supplement, participation in integration courses, parental allowance. Also,
some services are already available online in certain Länder, but not yet nation-
wide, e.g. applications for housing allowance and for building permits.
A revision of the Online Access Act was adopted by the Federal Cabinet in
May 2023, the Act Amending the Online Access Act. This act is rooted in the

28
experience gained in recent years. In this way, the policies are to be rolled out
for accelerated digitalisation and entirely digital administrative procedures.
Also, in 2023 the Federal Government selected 16 focus services which are used
particularly frequently by citizens, and prioritised them. The digitalisation of these
focus services is to be accelerated and made available online nation-wide, e.g.
change of residence notifications, driving licences and licences for installations.
The energy price allowance focus service has already been implemented.
The current implementation status of the measures can be
found on the Online Access Act dashboard at
https://dashboard.ozg-umsetzung.de/
“One for all” principle Under the “one for all” principle, each Land is to digitalise an administrative service Status: ongoing
and inter-federal in such a way that other Länder can make use of it and do not need to develop
cooperation the process again themselves. This saves costs and fosters a division of labour.
BundID The Act amending the Online Services Act makes the BundID the central Status: ongoing
user account throughout Germany; all the Länder must convert their services
within three years and use BundID. In this way, the standardisation and user-
friendly digitalisation of the administration is accelerated. The central citizens’
accounts enable citizens to identify themselves and provide authentication
nation-wide for online administrative services provided by the Federation
German Draft Budgetary Plan 2024

and the Länder via the online ID function of their identity card (eID).
 Table 11: continuation

The Council of the European

Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 3:
Remove barriers to investment Status and
Title of measure Description and direct relevance to target
and promote digital communica- timetable
tions networks
Similarly, companies will in future be able to submit all their applications via
their central organisation account. By the end of 5 years at the latest, purely
business-related administrative services are to be offered online if this serves
Basis for the present Draft Budgetary Plan 2024

the implementation of federal legislation in the field of corporate law.

The current implementation status of the measures can be found on the
Online Access Act dashboard at https://dashboard.ozg-umsetzung.de/
Once-only principle The once-only principle is to be anchored in law so that documentation Status: ongoing
for an application – e.g. for a birth certificate – can either be
obtained online from the competent authorities and registers, or
provided online by the citizen, as the applicant wishes.
Data skills toolbox The data skills toolbox is a freely available learning and further education The toolbox released a

29
platform which explains the secure and responsible handling of data first public beta version
in an easy-to-understand way. This enables the general public to of the platform for test
acquire basic data skills using digital tools, programming exercises and purposes in September
interactive practice tasks, as well as user-selected learning modules. 2023. This is to be
further improved and
complemented with
additional tools by
the end of 2024.
Data Skills Transfer Hub The Data Skills Transfer Hub supports stakeholders, funders and The official launch
researchers via enhanced networking, raising the visibility of existing event of the Data Skills
services, and boosting the data skills level of the population, and by Transfer Hub is taking
supporting the transfer of data skills into the administration. place at the beginning
of October 2023. Up
to the end of 2024,
work will take place
on dashboards, best
practices and exchange
formats, which will
then be rolled out
on a permanent
decentralised basis.
German Draft Budgetary Plan 2024
 Table 11: continuation

The Council of the European

Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 3:
Remove barriers to investment Status and
Title of measure Description and direct relevance to target
and promote digital communica- timetable
tions networks
3.2 Remove investment obstacles and Act to Accelerate The draft legislation aims to accelerate planning and approval Cabinet decision
boost investment in very high capacity Approval Procedures procedures in the transport infrastructure sector. on draft legislation:
digital communication networks. in the Transport Sector 3 May 2023
An overriding public interest is to be stipulated for selected road and rail
Basis for the present Draft Budgetary Plan 2024

and to Implement
Directive (EU) projects. Further to this, the act provides for relaxed rules on the replacement of Comments by
2021/1187 of the bridges with new structures and the building of cycle paths on federal highways, Bundesrat:
European Parliament measures to digitalise planning approval procedures, and changes to the reference 12 May 2023
and of the Council date rules for the assessment of noise protection in the railway sector.
Cabinet decision
of 7 July 2021 on on government
streamlining measures response to Bundesrat
for advancing the comments:
realisation of the trans- 17 May 2023

30
European transport
network (Approval First Bundestag
Acceleration Act) reading: 22 June 2023
The parliamentary
procedure is
currently ongoing.
Federation’s The gigabit strategy contains a raft of 100 measures fostering the nation- At present, around
gigabit strategy wide roll-out of optical fibre and mobile communications in Germany. In a two-thirds of the
first step, half of all German households and companies are to be supplied measures have been
by optical fibre cables by 2025. By 2026, seamless wireless voice and data implemented, 35 are
services are to be available nation-wide for all end-users. By 2030, optical fibre being processed, and 4
cables are to be available nation-wide for all households and companies. have yet to commence.
All the measures are
to be implemented
by the end of 2024.
German Draft Budgetary Plan 2024
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 4: Status and
Reduce dependence, diversify Title of measure Description and direct relevance to target timetable
energy supply
4.1 Increase efforts to further Acceleration of Target relevance of the measures cited below: reduction in dependence see below
reduce the overall reliance on fossil the expansion of on fossil fuels via measures to realise the 80% RES target for 2030
fuels by boosting investment in renewable energy (see
and accelerating the deployment below for details)
of renewable energy and electricity
Basis for the present Draft Budgetary Plan 2024

Solar package The Economic Affairs and Climate Ministry held two PV summits on 10 March 2023 Currently going
networks through improved
and 5 May 2023 at which the ministry’s PV Strategy was discussed with stakeholders. through the
administrative capacity and
The PV Strategy is the outcome of a detailed consultation process with more than parliamentary
streamlined processes, including
600 comments received and entailing “reality checks” and sectoral surveys. The procedure, completion
permitting procedures.
strategy stipulates a range of measures to speed up the PV roll-out. The solar package planned for 2023
now implements key measures. It was adopted in the Cabinet on 16 August 2023.
It aims to reduce barriers in order to progress the necessary solar roll-out
more quickly and to attain the statutory objectives of the 2023 Renewable
Energy Sources Act. Amendments to the Renewable Energy Sources Act,

31
Energy Industry Act and other legislation are envisaged for this.
Onshore Wind Strategy Following a comprehensive stakeholder consultation process, the Economic Published on
Affairs and Climate Ministry presented an Onshore Wind Strategy at a wind energy 23 May 2023
summit on 23 May 2023. The strategy describes central measures and policies in 12
fields of action en route to approx. 160 GW of wind capacity by 2035, e.g. market-
driven RES expansion, acceleration of approvals, more sites in the near future,
transport, securing the supply of skilled workers, boosting production capacities.
Changes to the Renew- The revision of the energy price brakes created a temporary incentive in the Rules of the
able Energy Sourc- Renewable Energy Sources Act to boost the generation of electricity from amendment to the
es Act, the Act on the biogas, replacing the need to use natural gas to generate electricity. The energy price brakes
Need for Wind Energy intention is to take precautions in the light of potential gas shortages resulting entered into force
Sites and the Energy from the Ukraine war. The provisions of the Energy Security of Supply Act in in August 2023
Industry Act in the con- the Renewable Energy Sources Act ensure that biogas installations continue
text of the revision of to receive the feed-in tariff or market premium for the entire rated capacity of
the energy price brakes the installation in 2023 and 2024. Also, a flexibilisation of the slurry bonus until
30 April 2024 has been introduced. This means that the installations do not lose
their slurry bonus for ever if they temporarily fail to comply with the minimum
proportion of slurry. Also, on a temporary basis, the obligatory minimum hydraulic
retention time of 150 days in digestate storage facilities has been suspended.
German Draft Budgetary Plan 2024
 Table 11: continuation

The Council of the European

Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 4: Status and
Reduce dependence, diversify Title of measure Description and direct relevance to target timetable
energy supply
Implementation of the The implementation of the EU Emergency Regulation for faster approval procedures Implementing rules
EU Emergency in the field of RES (and grids, see below) dispenses for a certain period with were included as part
Regulation the environmental impact and species protection assessments in RES and grid of the revision of
areas if an environmental assessment has been undertaken at planning level. the Spatial Planning
Basis for the present Draft Budgetary Plan 2024

Act (in force since

29 March 2023).
Amendment of Federal The changes to the Federal Immission Control Act are intended to The Federal
Immission Control Act simplify and expedite approval procedures for onshore wind in particular. Immission Control
and Approval Acceler- Key provisions include: general strengthening of the role of the project Act and the Approval
ation Act to speed up manager, adaptation of rules on deadlines and reference dates, rules on the Acceleration Act
approval procedures digitalisation of the participation procedure; specifically for onshore wind are passing through
and green electrolysers, the public hearing (section 16 of the 9th Federal the parliamentary
Immission Control Ordinance) is dispensed with, the repowering rules are procedure.

32
improved, and rules for more efficient interim injunctions put in place.
Obligation to toler- In order to accelerate the connection of RES to the grid, there Going through
ate renewable en- are plans to introduce an obligation to tolerate the laying and parliamentary
ergy installations in operation of connectors in return for compensation. The provisions procedure (Cabinet
the Renewable En- are to be included in the Renewable Energy Sources Act. decision on
ergy Sources Act 16 August 2023)
Site-related measures Under the new section 245e(5) of the Federal Building Code, municipalities Section 245e(5)
for onshore wind can designate sites for wind energy even if spatial planning rules still of the Federal
exclude this possibility. This expands the municipalities’ scope to act. Building Code was
promulgated in the
Under the new section 3(4) of the Act on the Need for Wind Energy Federal Law Gazette
Sites, the Länder can bring forward the site-based targets and the on 14 July 2023 and
legal consequences that apply should the targets be missed. enters into force on
14 January 2024.
Section 3(4) of the
Act on the Need for
Wind Energy Sites
has been in force
since 3 August 2023.
German Draft Budgetary Plan 2024
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 4: Status and
Reduce dependence, diversify Title of measure Description and direct relevance to target timetable
energy supply
Revision of the Spatial Revision of the Spatial Planning Act and the Federal Building Code to One part entered into
Planning Act and the accelerate the planning procedures for regional planning and land-use force on 29 March
Federal Building Code plans (e.g. via greater digitalisation of the participation procedure). 2023. Further
amendments to the
Spatial Planning
Basis for the present Draft Budgetary Plan 2024

Act apply from

28 September 2023.
Implementation The Renewable Energy Directive (RED III) provides for rules to simplify planning and The timetable is being
of RED III approval procedures for RES projects. Some aspects of its implementation must be set up; implementation
undertaken by summer 2024; corresponding steps are currently being prepared. deadlines vary, the
shortest being 6
months following entry
into force of the RED.

33
Better connection of The field of offshore grid connectors comprises measures to ensure a better
offshore wind turbines capacity utilisation of the connectors in the short and medium term, and to
(Energy Security of attain the offshore expansion targets. In particular, the construction time
Supply Act/Energy window in the territorial sea is lengthened, and a possibility to deviate from
Industry Act) the 2K criterion is stipulated both in the EEZ and in the territorial sea.
Acceleration of
expansion of the
power grid (see
below for details)
Implementation of The implementation of the EU Emergency Regulation in section 43m of the Entered into force
the EU Emergency Energy Industry Act via the revision of the Spatial Planning Act means that it is on 29 March 2023.
Regulation via the possible to dispense for a certain period with an environmental impact and a
revision of the Spatial species protection assessment if the grid expansion projects are built in areas
Planning Act for which a Strategic Environmental Assessment has been undertaken.
Act to Bring Energy Planned rules to accelerate grid expansion include: strengthening of the Currently going
Industry Legislation pooling requirement, reduction of the existing two-stage planning approval through the
into Line with Union- procedure under the Grid Expansion Acceleration Act to a single stage, more parliamentary
Law Requirements and efficient management of the public participation, greater digitalisation and procedure
to Amend Other Energy relaxed rules on implementation during the addition to the plan. A further
Legislation (revision of simplification for the optimisation of the existing grids is also envisaged.
German Draft Budgetary Plan 2024

the Energy Industry Act)

 Table 11: continuation

The Council of the European

Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 4: Status and
Reduce dependence, diversify Title of measure Description and direct relevance to target timetable
energy supply
Acceleration of the Target relevance of the measures cited below: reduction in dependence on
heat transition fossil fuels via measures to realise the 65% RES rule for heating systems
Buildings Energy Act The 2nd revision of the Buildings Energy Act provides that, in principle, every Act adopted
newly installed heating system in new-build areas from 1 January 2024 should (Bundestag 2nd/3rd
Basis for the present Draft Budgetary Plan 2024

use at least 65% renewable energy. Newly installed heating systems in existing readings on
buildings will be subject to this requirement following the completion of 8 September 2023
municipal heat planning, at the latest from 1 July 2026 in cities with more and Bundesrat II on
than 100,000 inhabitants, and from 1 July 2028 in all other municipalities. 29 September 2023)
Entry into force:
1 January 2024
Federal funding for The Federal Government provides support via the federal funding for energy- Currently going
energy-efficient efficient buildings scheme towards the switch to climate-friendly heating through the

34
buildings (BEG) systems and accelerates investments in higher energy efficiency in buildings. parliamentary
To this end, the funding already being provided by the Federation is being procedure
further developed and increased. The aim is that no-one should be unable
to cope with the situation, and that economic viability aspects also play a
role. Consideration will be given to the individual needs and social hardship
into the heart of society. At the same time, the funding is to provide effective
incentives to achieve the earliest possible renewal and refitting of heating
systems and thus to attain an additional positive effect on the climate.
Heat Planning Act The Act on Heat Planning and the Decarbonisation of the Heating Networks (Heat Going through
Planning Act) obliges the Länder to undertake heat planning in their territory (or parliamentary
have it undertaken). The heat planning should analyse and describe what heat procedure (cabinet
supply types (e.g. heating network) are best suited to supply the various sub- decision on
areas of an area under planning. The heat planning improves the planning and 16 August 2023)
investment security of the stakeholders and helps improve the coordination of
the development of the energy infrastructure. Further to this, the act imposes
requirements on the proportion of renewable energy and unavoidable waste heat
in heating networks. The aim is to have the act enter into force on 1 January 2024.
Federal funding for Funding goes towards training on the design, installation and calibration of heat Running since
Heat Pump Expansion pumps in existing buildings. The programme is administered by the BAFA (Federal 1 April 2023 for
Programme Office for Economic Affairs and Export Control), runs from 1 April 2023 for 30 30 months
months, and has a planned volume of €57m. Applications are accepted from skilled
German Draft Budgetary Plan 2024

craft enterprises (plumbing, heating, air-con, electrical, refrigeration, chimney

sweeps), energy consultants and planning offices for building technology.
 Table 11: continuation
The Council of the European
Union recommends that Germany Reporting period April 2023 to March 2024
take action in 2023 and 2024 to:
Recommendation 4: Status and
Reduce dependence, diversify Title of measure Description and direct relevance to target timetable
energy supply
The funding programme is intended to make a significant
contribution towards the rapid further training of qualified experts,
energy consultants and planners of building technology.
4.2 Step up energy efficiency efforts Energy Efficiency Act The act supports the implementation of the revised Energy Efficiency Directive The Act was adopted
Basis for the present Draft Budgetary Plan 2024

in transport, building and industry, adopted in the summer. Energy efficiency targets for primary and final energy by the Bundestag
including through investments in consumption are stipulated for 2030. It includes provisions to strengthen the position on 21 September
heating systems and further policy of the public sector as a role model. The Federation and the Länder are required to 2023. It will probably
measures aimed at the provision take efficiency measures and to achieve final energy consumption cuts of 45 TWh be considered by a
and acquisition of the skills (Federation) and 3 TWh (Länder). Furthermore, public authorities must cut final plenary sitting of
needed for the green transition. energy consumption by 2% if they consume more than 1 GWh a year. Section 6(7) of the Bundesrat on
the Energy Efficiency Act contains an authorisation for the Länder to issue ordinances. 20 October 2023.
Federal funding for This programme provides grants towards investments in energy and resource In force since 2019,
energy and resource efficiency and in process heat from renewable energy in the sector of industry last revision of the

35
efficiency in business and commerce. It offers the following variants: “grants” (BAFA), “loans” (KfW) guidelines was in May
and a “funding competition” (run by VDI/VDE-IT). The maximum funding 2023. Runs until
per project is €15m, covering up to 65% of eligible investment costs. 30 June 2024,
extension possible up
to 31 December 2026.
Advice and The main task of the Economic Affairs and Climate Ministry’s energy switching The campaign was
communications campaign is to provide end users with comprehensive information about energy launched in June 2022
(energy switching efficiency and renewable heat, especially the Ministry’s relevant funding programmes, and is to continue
campaign and and to encourage them to implement energy-efficient measures. Further to this, the until at least 2025.
energy advice) campaign implements requirements to provide information (e.g. National Action
Plan on Energy Efficiency, Energy Efficiency Directive, EU Energy Label Regulation).
The provision of advice on energy is a key tool to attain the climate
targets in the fields of buildings, industry and commerce. At the same Full continuation
time, the energy advice boosts the capacity of energy consumers to take of the advisory
their own decisions, and helps avoid misdirected investments. programmes
Re energy efficiency 1st revision of the Buildings Energy Act: permissible primary energy demand Change to Buildings
in buildings (Buildings standard for new-builds raised to Efficiency House 55 Standard. Energy Act entered
Energy Act) into force on
1 January 2023.
German Draft Budgetary Plan 2024

Last stand: 9 October 2023

Basis for the present Draft Budgetary Plan 2024 German Draft Budgetary Plan 2024

Table 12: Methodological aspects

Estimation tech- Relevant step of the Relevant features of the
Assumptions
nique budgetary process model/technique used
Macroeconomic Before each tax Iterative-analytic approach: several Technical assumptions
forecast revenue estimate partial models are used in the (for oil and commodity
system of national accounts. prices, exchange rates
and interest rates)
Potential GDP is estimated on
the basis of models developed
and recommended by the Output
Gaps Working Group of the
European Union’s Economic
Policy Committee (EPC).
Tax estimate Basis for drafting and Estimate based on macroeconomic Macroeconomic forecast,
finalising budget forecast and time series analysis estimates on the fiscal
impact of discretionary
tax measures

Fiscal impact of Basis for tax revenue Microsimulation models based on Macroeconomic forecast
discretionary tax estimate and for drafting tax statistics; calculations based
measures and finalising budget on macroeconomic assumptions

36
Published by

Federal Ministry of Finance

Division LB 3 | Public Relations and Civic Dialogue
Wilhelmstr. 97
10117 Berlin
Germany

Edited by
Division I A 4

Publication Date
October 2023

Further information can be found online at:

www.bundesfinanzministerium.de
www.federal-ministry-of-finance.de
www.bundesfinanzministerium.de/en