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Zum Zusammenhang zwischen der Verschuldung der Bundesländer und ihren finanziellen Handlungsspielräumen

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  • Sabine Freye

Abstract

The German Federal States have little impact on their budget. Both, revenues and ex-penditures, are basically determined by federal and European law. For a long time, this situation has been causing increasing debts. Today, public debts are again a top issue. The planned federal “debt brake” includes a gradual reduction and an interdiction of structural debts as from 2020. In a short perspective, this means an additional financial limitation to the public budgets. With regard to the described situation, the main question of this paper is: Do the German states actually have financial scope to realize the implementation of the planned “debt brake”? The analyses show that the financial scope for reducing their structural debts is particularly small in the five Federal States benefitting from additional transfers as from 2010. The highest budget restrictions do show the city states Berlin and Bremen.

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Bibliographic Info

Paper provided by Halle Institute for Economic Research in its series IWH Discussion Papers with number 12.

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Date of creation: May 2009
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Handle: RePEc:iwh:dispap:12-09

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Keywords: debts; public budget; Federal States; interest-tax-rate; expenditure-tax-rate;

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  1. Jochimsen, Beate & Nuscheler, Robert, 2005. "The Political Economy of the German Länder Deficits," Discussion Papers 2005/6, Free University Berlin, School of Business & Economics.
  2. Katja Wilde & Sabine Freye, 2009. "Auslaufen der Solidarpaktmittel: Sind die Neuen Länder ausreichend vorbereitet?," Wirtschaft im Wandel, Halle Institute for Economic Research, vol. 15(3), pages 132-140.
  3. Heiner Felix Mikosch & Silke Übelmesser, 2007. "Staatsverschuldungsunterschiede im internationalen Vergleich und Schlussfolgerungen für Deutschland," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(4), pages 309-334, November.
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