The municipal deficit in Rhineland-Palatinate is falling thanks to state aid

The deficit in the cities and municipalities in Rhineland-Palatinate fell slightly in the first half of the year - although not because of fundamentally improved conditions, but because of additional money from the state. As the State Statistical Office in Bad Ems announced, the municipalities' core budgets ended the first half of 2026 with a deficit of around 1.1 billion euros. That was around 425 million euros or 27 percent less than in the same period last year.

An important reason for this was that the state decided on so-called supplementary allocations for the municipalities with a supplementary budget last year - i.e. additional money totaling 300 million euros for 2025 and 2026. The amounts for 2026 had already been paid out in the first half of the year.

Nevertheless, the municipalities' total income is lower than their expenses. According to the state office, income adjusted for payments between municipalities amounted to around 7.7 billion euros, almost eleven percent more than in the first half of 2025. This was offset by expenses of 8.8 billion euros, almost 4 percent more than in the first six months of the previous year.

Expenditure on personnel climbed by 3.6 percent to around 2.2 billion euros compared to the same period last year. Material expenses rose by 5.6 percent to 98 million. 2.4 billion euros were spent on social issues - 3.7 percent more.

According to the information, tax revenue, the largest item of income, rose by 4.8 percent to around 2.5 billion euros. Striking: The trade tax, which is important for municipalities, brought in more after a decline in the same period last year - 2.2 percent and 1.3 billion euros in absolute figures. However, the municipal share of income tax fell by around one percent.

While the independent cities had a deficit of 435 million euros, that of the districts was 318 million, that of the local municipalities was 245 million and that of the association municipalities was 26 million euros. As was the case after the first half of 2025, none of the twelve independent cities were able to finish in the black this time. Four out of 24 districts achieved this, 60 out of 129 in the association municipalities and 807 out of 2,259 in the local municipalities.