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Germany's budget deficit approaches €99 billion in first half of 2026

Germany
# 03 October 2026 04:12 (UTC +04:00)

Germany's general government budget deficit, covering the federal government, states, municipalities and social security funds, reached €98.8 billion in the first half of 2026, APA reports.

This was €40.3 billion higher than in the same period last year.

According to Germany's Federal Statistical Office (Destatis), government revenue increased by 2% to €1.0118 trillion in January-June, while expenditure rose by 6% to €1.1106 trillion.

The largest deficit was recorded by the federal government at €72.3 billion. Federal government spending increased by 9.8% to €325.5 billion, while revenue fell by 5% to €253.1 billion.

The budget deficit of municipalities also reached €20.1 billion, marking the highest first-half figure since the reunification of East and West Germany in 1990.

The government's interest payments rose by 21.2% year-on-year to €31.2 billion.

The report noted that economic stagnation, as well as higher investment and defense spending, contributed to the persistently high budget deficit.

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