Policy Article

The Kiel Subsidy Report and the Kiel Subsidies traffic light scheme: Federal grants and tax breaks until 2017 - an update (original publication is German only)

Kieler Beiträge zur Wirtschaftspolitik

In the new Kiel Institute subsidy report the authors Claus-Friedrich Laaser and Astrid Rosenschon document the federal grants as well as the total tax benefits until the year 2017. According to the federal budget, all federal financial grants increased again in 2017, by 10.8 percent to 55.3 billion euros. This is 20.8 billion euros more than before the financial crisis in 2007. In 2017, the tax concessions totaled 62.1 billion euros. The subsidy report for the first time includes a categorization of the important financial aids of the federal government and of the largest tax concessions with regard to their gradual harmfulness, carried out according to a "red-yellow-green" traffic light scheme.

The original publication is German. The title is: "Kieler Subventionsbericht und die Kieler Subventionsampel: Finanzhilfen des Bundes und Steuervergünstigungen bis 2017 – eine Aktualisierung".