BERLIN (MNI) – German tax revenue growth picked up markedly in May,
according to data released Monday by the Finance Ministry in its monthly
report.
The annual rise in total tax revenue (excluding local taxes) soared
in May to 10.1% from 3.4% in April. In the January-May period, tax
revenue was up 9.2% on the year. Last month, the government’s tax
estimate commission forecast full-year tax revenue growth of 4.4%.
Annual federal tax revenue growth jumped to 11.8% in May from 4.7%
in April. In the first five months of the year, federal tax revenue
increased 11.3% on the year compared to full-year forecasts of +5.1%.
Federal revenue — tax intake plus other income — was up 8.9% on
the year in the January-May period. The 2011 budget assumes a 0.9%
revenue drop for the full year. Federal expenditures rose 0.2% on the
year in the first five months of the year compared to a full-year
estimate of +0.7%.
The ministry reaffirmed that federal net new borrowing this year
will likely stay below E40 billion, markedly undershooting the E48.4
billion foreseen in the 2011 budget.
In the economic section of its report, the ministry noted that
economic growth moderated at the start of the second quarter. “Current
sentiment indicators and hard economic data are signaling that the
German economy is now entering a flatter growth path,” the report
observed.
Commenting on price developments, the ministry noted that the
recent acceleration of German inflation was mainly due to the increase
of oil prices. Looking ahead, the commodity price hikes will likely
gradually feed through more broadly into prices of consumer goods, most
of all motor fuel prices, it reckoned.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$G$$$,M$X$$$,MFGBU$,MFX$$$,MGX$$$]
