BBK: German Local Govts’ Budget Likely In Surplus In 2012

BERLIN (MNI) – German local governments could post a budget surplus
this year if they manage to contain their expenditures, the Bundesbank
forecast in its latest monthly report released Monday.

In 2011, the local governments’ budget deficit was likely cut in
half from the E7.7 billion shortfall registered in 2010, the central
bank said.

The local governments’ association (DStGB) earlier this month also
forecast a budget surplus this year. For last year, it projected a
deficit of some E3.0 billion.

Federal, state and local governments’ budget balances, together
with the country’s social insurance funds, make up Germany’s total
public sector budget, on which compliance with the EU Stability and
Growth Pact is measured.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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