Policy Article

The Kiel Subsidy Report and the Kiel Subsidies traffic light scheme: Federal grants and tax breaks until 2017 – an update (in German)

Authors

  • Laaser
  • C.-F.
  • Rosenschon
  • A.
Publication Date

In the present Kiel Institute subsidy report the federal grants as well as total tax benefits are documented until the year 2017. In 2016, the federal government paid direct and indirect grants via the federal states including special budgets totalling EUR 47.6 billion. Including compensation payments to the federal states for abandoned subsidies the sum amounted to as much as EUR 49.9 billion. According to the federal budget, all federal financial grants increased again in 2017, by 10.8 percent to EUR 55.3 billion. This is EUR 20.8 billion more than before the financial crisis in 2007. In 2017, the tax concessions totalled EUR 62.1 billion. 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.

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Key Words

  • Reduction of Subsidies
  • subsidies
  • Tax policy