BBK: Germany Local Govt Deficits To Fall Markedly in 2012

BERLIN (MNI) – Due to strong tax revenue, the budget deficits of
German local governments will fall markedly this year, the Bundesbank
forecast in its latest monthly report published Monday.

Moreover, the country’s public health fund will likely post a
larger surplus in 2012 than the roughly E250 million expected by the
government, the central bank said.

Municipal budgets, together with the budgets of the federal and
state governments as well as the social insurance funds, make up the
total public sector budget, against which compliance with the EU’s
Stability and Growth Pact is measured.

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

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