The state’s financing deficit for 2025, according to preliminary figures released by the Federal Statistical Office on Wednesday, was €119.1 billion-€3.9 billion higher than the €115.3 billion recorded in 2024. When measured as a percentage of nominal gross domestic product, the deficit margin stood at 2.7 percent in 2025, the same as in 2024.
These results are based on the European System of Accounts 2010 (ESA 2010). They form the basis for monitoring the fiscal situation in EU member states under the Stability and Growth Pact, but are not identical to the public total budget balance in the context of financial statistics.
In 2025, roughly two‑thirds of the overall financing deficit was attributable to the federal government. Its deficit rose by €18.6 billion to €79.6 billion, compared with €60.9 billion in 2024. Municipalities saw an increase of €7.1 billion, bringing their deficit to €28.1 billion from €21.0 billion in 2024. Conversely, the federal states reduced their deficit to €9.8 billion, more than halving it from €21.6 billion the previous year. The social security system also experienced a sharp decline, with its deficit falling to €1.7 billion from €11.8 billion in 2024. All four state sectors continued to run deficits in 2025, as in the prior year.
State revenue in the national accounts amounted to €2,140.2 billion in 2025, up 5.7 percent-or €115.8 billion-over the previous year. The largest contributor to this rise was social contributions, which grew by 8.9 percent. Total current tax receipts increased 3.5 percent to €1,031.5 billion. Value‑added tax revenues grew 4 percent, income‑ and wealth‑tax receipts rose 3.4 percent, and additional gains from property‑related taxes, boosted by a higher inheritance volume, also helped lift overall revenues. Interest income, by contrast, fell 18 percent year‑on‑year.
State expenditures, reported in the national accounts, rose 5.6 percent-or €119.6 billion-to €2,259.3 billion in 2025, outpacing the increases in revenue. Interest outlays were 8.1 percent higher than the previous year. Monetary social benefits grew 5.6 percent, driven mainly by higher spending on pensions, unemployment benefits, and nursing care. In‑kind social benefits also climbed, up 7.3 percent, largely due to additional costs for hospital treatment, medication, and nursing. Gross investment increased 10.3 percent, reflecting new spending from special funds earmarked for infrastructure and climate‑neutrality projects, together with rising military expenditures.
