Where does Germany’s public deficit come from?
Revenue and spending of the federal government, the Länder, municipalities and social security since 1995, and what sets Germany apart from France.
Scope: German general government (federal government, Länder, municipalities, social security), national accounts, Eurostat data. · Data as of Oct 27, 2026.
Key takeaways
- In 2025, German general government spent €2,270bn against €2,138bn of revenue: a deficit of €132bn, or 2.9% of GDP. Debt stands at 62.8% of GDP, almost half the French level.
- Pensions did not gain weight: they cost 11.6% of GDP in 2024, exactly as in 2000, while the share of people aged 65+ rose from 16.2% to 22.4%. The 2000s reforms (sustainability factor, gradual move to 67) restrained pensions. Health gained +1.1 points of GDP over the same period.
- Germany went from a surplus of 1.3% of GDP in 2019 to a deficit of 2.7% in 2024. Spending explains most of it (+3.7 points): economic affairs (+0.8 point, mainly transport: €77bn in 2019, €116bn in 2024), general services (+0.7), family and exclusion (+0.4), health (+0.4), defence and security (+0.3), pensions (+0.3) and interest (+0.3). Revenue fell by 0.4 point.
- The deficit sits mainly with the federal government (−1.9% of GDP in 2025). The Länder (−0.3), municipalities (−0.7) and social security (0.0) are close to balance.
- Compared with France, Germany spent 8 points of GDP less in 2024 (49.0% against 57.0%): −3.2 points on pensions, −1.4 on health, −1.9 on environment, community amenities and culture, −0.9 on interest. It levies 5 points less (46.2% against 51.2%), mostly because it has far fewer taxes on production (−5.2 points). Its social contributions are even slightly higher (+0.8).
Revenue and spending, year by year
For each year: left bar = revenue (grey), right bar = spending (colours), stacked by type. The gap between the two bars is the deficit (or surplus). Tap an item in the legend to isolate it. Spending by function is published from 2000 to 2024; the “by nature” view covers 1995–2025.
What widened (or narrowed) the deficit
Change of each item in points of GDP between two years. Spending that rises, or revenue that falls, widens the deficit (bar to the left).
Public balance: 1.3% of GDP in 2019, −2.7% in 2024, a change of −4.0 points. Contribution of spending: −3.7 pt; of revenue: −0.4 pt.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Revenue
Detail by item · 2019 → 2024
| Detail by item | Side | 2019 | 2024 | Change (pt) | Effect on balance (pt) |
|---|---|---|---|---|---|
| Other taxes on production (property, energy, alcohol, tobacco…) | Revenue | 4.22 | 3.30 | −0.92 | −0.92 |
| Economic affairs (transport, business support, energy) | Spending | 4.55 | 5.35 | +0.79 | −0.79 |
| General services (excluding debt) | Spending | 4.74 | 5.39 | +0.65 | −0.65 |
| Household income taxes | Revenue | 9.53 | 9.04 | −0.50 | −0.50 |
| Family, housing benefits, social exclusion | Spending | 3.22 | 3.63 | +0.41 | −0.41 |
| Health (hospitals, outpatient care, medicines) | Spending | 7.11 | 7.51 | +0.39 | −0.39 |
| Defence, police, justice | Spending | 2.63 | 2.95 | +0.32 | −0.32 |
| Pensions (old age + survivors) | Spending | 11.27 | 11.58 | +0.31 | −0.31 |
| Interest on debt | Spending | 0.86 | 1.12 | +0.26 | −0.26 |
| Education | Spending | 4.27 | 4.44 | +0.17 | −0.17 |
| Unemployment | Spending | 1.48 | 1.64 | +0.16 | −0.16 |
| Sickness and disability benefits | Spending | 3.14 | 3.28 | +0.14 | −0.14 |
| Environment, community amenities, culture | Spending | 2.01 | 2.07 | +0.07 | −0.07 |
| VAT | Revenue | 6.86 | 6.81 | −0.05 | −0.05 |
| Other current taxes (wealth…) | Revenue | 0.75 | 0.73 | −0.03 | −0.03 |
| Capital taxes (inheritance…) | Revenue | 0.20 | 0.23 | +0.03 | +0.03 |
| Corporate income tax | Revenue | 2.58 | 2.85 | +0.27 | +0.27 |
| Other revenue (sales, property income, transfers) | Revenue | 5.62 | 6.03 | +0.40 | +0.40 |
| Social contributions | Revenue | 16.82 | 17.25 | +0.43 | +0.43 |
| Total revenue | Revenue | 46.59 | 46.24 | −0.36 | −0.36 |
| Total spending | Spending | 45.27 | 48.95 | +3.68 | −3.68 |
| Balance | Balance | 1.32 | -2.72 | −4.04 | −4.04 |
The drivers
Pensions and health
Public spending on pensions (old age + survivors) and health, % of GDP.
- Pensions · 11.6% (2024)
- Health · 7.5% (2024)
The demographic driver
Share of people aged 65 and over, on 1 January (%).
- Aged 65+ · 22.7% (2025)
Public balance
% of GDP. Negative = deficit. The Maastricht 3% threshold is dashed.
- Balance · −2.9% (2025)
Who carries the deficit?
Balance by level of government, % of GDP.
- Federal government · −1.9% (2025)
- Länder · −0.3% (2025)
- Municipalities · −0.7% (2025)
- Social security · 0.0% (2025)
Germany and France
Same Eurostat accounts, same scope (general government), in % of GDP. France is Citoyen’s reference line: to the right of a gap chart, Germany is above France.
Public spending, % of GDP
- Germany · 50.1% (2025)
- France · 57.3% (2025)
Public revenue, % of GDP
- Germany · 47.2% (2025)
- France · 52.2% (2025)
Public balance, % of GDP
- Germany · −2.9% (2025)
- France · −5.1% (2025)
Public debt, % of GDP
- Germany · 62.8% (2025)
- France · 115.7% (2025)
Structure of revenue and spending
One bar per country and side, stacked by item, % of GDP.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Social contributions
- Household income taxes
- VAT
- Other taxes on production
- Corporate income tax
- Other revenue
Where Germany spends and levies more (or less) than France
Germany minus France, in points of GDP, same year. To the right, Germany is higher.
- Germany − France · 2024
Spending by nature
What public money pays for: wages, benefits, purchases, investment… In Germany care is mostly bought by health-insurance funds (benefits in kind); in France much of it goes through public hospitals (wages and purchases). Comparing by nature therefore mixes organisation and spending level.
- Cash benefits (pensions, allowances)
- Purchased benefits in kind (reimbursed care…)
- Public employee compensation
- Operating purchases
- Interest on debt
- Subsidies
- Investment
- Other transfers
Germany − France gap by type of spending, points of GDP
- Germany − France · 2025
Yearly data
Show the table of revenue, spending, balance and debt by year
| Year | Revenue | Spending | Balance | Balance (% of GDP) | Debt (% of GDP) |
|---|---|---|---|---|---|
| 2025 | €2,138bn | €2,270bn | −€132bn | −2.9% | 62.8% |
| 2024 | €2,028bn | €2,147bn | −€119bn | −2.7% | 61.4% |
| 2023 | €1,935bn | €2,030bn | −€95bn | −2.2% | 61.8% |
| 2022 | €1,864bn | €1,938bn | −€74bn | −1.9% | 64.1% |
| 2021 | €1,749bn | €1,867bn | −€118bn | −3.2% | 67.4% |
| 2020 | €1,613bn | €1,764bn | −€151bn | −4.3% | 67.5% |
| 2019 | €1,658bn | €1,611bn | €47bn | 1.3% | 58.3% |
| 2018 | €1,598bn | €1,533bn | €65bn | 1.9% | 60.5% |
| 2017 | €1,529bn | €1,485bn | €45bn | 1.3% | 63.7% |
| 2016 | €1,465bn | €1,429bn | €36bn | 1.1% | 68.1% |
| 2015 | €1,402bn | €1,373bn | €28bn | 0.9% | 71.0% |
| 2014 | €1,350bn | €1,328bn | €22bn | 0.7% | 74.4% |
| 2013 | €1,298bn | €1,295bn | €3.5bn | 0.1% | 77.4% |
| 2012 | €1,261bn | €1,263bn | −€1.5bn | −0.1% | 79.8% |
| 2011 | €1,221bn | €1,244bn | −€23bn | −0.8% | 78.5% |
| 2010 | €1,143bn | €1,259bn | −€116bn | −4.4% | 81.0% |
| 2009 | €1,126bn | €1,205bn | −€79bn | −3.2% | 72.4% |
| 2008 | €1,143bn | €1,150bn | −€6.8bn | −0.3% | 65.2% |
| 2007 | €1,111bn | €1,107bn | €3.9bn | 0.2% | 63.7% |
| 2006 | €1,057bn | €1,099bn | −€43bn | −1.8% | 66.4% |
| 2005 | €1,012bn | €1,090bn | −€78bn | −3.4% | 67.1% |
| 2004 | €999bn | €1,077bn | −€78bn | −3.4% | 65.0% |
| 2003 | €1,001bn | €1,087bn | −€86bn | −3.8% | 63.3% |
| 2002 | €982bn | €1,073bn | −€91bn | −4.1% | 59.8% |
| 2001 | €978bn | €1,046bn | −€69bn | −3.1% | 58.1% |
| 2000 | €987bn | €1,023bn | −€37bn | −1.7% | 59.2% |
| 1999 | €968bn | €1,007bn | −€39bn | −1.9% | 60.3% |
| 1998 | €917bn | €970bn | −€53bn | −2.6% | 59.4% |
| 1997 | €896bn | €955bn | −€59bn | −3.0% | 58.8% |
| 1996 | €907bn | €979bn | −€72bn | −3.6% | 57.7% |
| 1995 | €908bn | €1,096bn | −€187bn | −9.4% | 54.9% |
Sources and method
- Eurostat, government finance statistics. Total revenue and spending, detail of taxes and contributions, spending by nature, balance by level of government. These are Destatis national accounts reported to Eurostat, general government scope (S13), and the same tables as for France.gov_10a_main
- Eurostat, spending by function (COFOG). Pensions = old age (GF1002) + survivors (GF1003); health = GF07; interest = public debt transactions (GF0107). German detail published from 2000 to 2024.gov_10a_exp
- Eurostat, GDP, debt and population. GDP and deflator, Maastricht debt, share of people aged 65+.nama_10_gdpgov_10dd_edpt1demo_pjanind
- Method. Constant euros: current euros adjusted by the GDP deflator (euros of the latest year). “General services” cover general administration, development aid, basic research and transfers to other levels of government; the small gap between the COFOG total and total spending is put there.
- Further reading. Destatis (public finance), Federal Ministry of Finance, Stability Council (Stabilitätsrat), Deutsche Rentenversicherung.DestatisBundesfinanzministeriumStabilitätsratDeutsche Rentenversicherung