Policy Article
Kiel Subsidy Report: Rising federal subsidies up to 2018 - With a focus analysis on transport subsidies (in German)
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Tax Policy
Fiscal Policy & National Budgets
Germany
The present Kiel Subsidy Report documents the financial assistance provided by the federal government (including ancillary budgets) and the tax concessions granted by local authorities until 2018. In 2018, according to the federal budget, total federal financial aid again increased significantly, by 7.5 percent to 56.4 billion euros. The total tax breaks in 2018 amounted to just under 62.0 billion euros. In addition, the subsidy traffic light has also been updated, which classifies the most important financial aids of the federal government and the largest tax concessions with regard to their gradual harmfulness. According to this, just over 20 percent are marked "red" ("= to be deleted without replacement). In order to gain an approximate overview of the total subsidies in the Federal Republic of Germany, the state financial assistance was additionally estimated in two scenarios. The subsidy report also contains a special evaluation of the financial aid provided by the Federal Government for the transport sector. The focus here is on payments to the railway sector (2018: over 20 billion euros).
