(RTTNews) - Tuesday, Germany’s Federal Statistical Office or Destatis announced that the general government deficit stood at EUR 17.3 billion in the first half of the year, in contrast to the EUR 7 billion surplus in the same period last year.

The general government deficit was 1.5% of gross domestic product in the first half of the year.

The economic and financial crisis had effected on the central government budgets, L�nder and municipalities and also on the social insurance budget, the Destatis said.

The general government revenue dropped 1.1% in the first six months of the year. This was the first decline since 2004. Meanwhile, general government expenditure increased 3.5%.

Tax revenue, which forms half of the total revenue, declined 3.8% year-on-year, with corporate tax revenue plummeting 46%.

On the expenditure side, there was an 11.2% rise in subsidies, largely due to the Federal Employment Agency’s reimbursement of social insurance contributions for short-time workers payable by enterprises.

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Posted in Categories: Economy, Eurozone, Releases.

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