Increased revenues for the federal state of Berlin in the first quarter

Finance Senator Daniel Wesener

In the first quarter of this year, the federal state of Berlin generated significantly higher revenues than in the same period last year.

More specifically, 7.636 billion euros went into the state coffers, of which 7.231 billion euros came from taxes, as the financial administration informed the Deutsche Presse-Agentur in response to an enquiry. This was an increase of 28.3 per cent or 1.684 billion euros compared to the first quarter of 2021, which, however, was extraordinarily weak due to the Corona pandemic.

Revenue situation still difficult to anticipate

Despite the positive development in the first three months of the year, the state's revenue situation is still difficult to forecast. This is because dampening effects are becoming apparent. For 2022 as a whole, the financial administration expects a decline in revenue compared to the previous year. It is planning for total revenues of 26.111 billion euros - that would be a decline of 176 million euros compared to 2021.

Economic forecasts of the Council of Economic Experts significantly lowered

In particular, the Russian war of aggression in Ukraine is dampening expectations for revenue development and making any forecasts more difficult, the finance administration said. It recalled that the Council of Economic Experts had significantly lowered its economic forecasts from 4.6 to 1.8 per cent and raised its inflation expectations. In addition, foreseeable federal legislative projects, including the Tax Relief Act, weakened the state's revenue situation.

"In the near future we see considerable risks for the state budget"

"We should not be deceived by the increased revenues, which are very pleasing at first glance. This development will not last," Finance Senator Daniel Wesener (Greens) told dpa. "In the near future, we see considerable risks for the state budget. We should take precautions for this and set clear priorities for public spending."