State quota reaches historic high

The German state is spending more money in relation to economic output than ever before. According to information from “Spiegel”, which has internal documents from the Federal Ministry of Finance, the federal government is now expecting a state quota of 52 percent for this year. In 2027 it is expected to rise to 52.4 percent. The ministry had actually assumed lower values.

Until now, Lars Klingbeil's (SPD) ministry had expected a state quota of 51.4 percent for this year and 51.5 percent for next year. The government quota relates total government spending to gross domestic product (GDP). If the government quota increases, this corresponds to a larger share of economic output being allocated to government spending.