RTTNews - Tuesday, Germany's Federal Statistical Office or Destatis announced that the general government deficit stood at EUR 17.3 billion in the first half of the year, in contrast to the EUR 7 billion surplus in the same period last year.
The general government deficit was 1.5% of gross domestic product in the first half of the year.
The economic and financial crisis had effected on the central government budgets, Länder and municipalities and also on the social insurance budget, the Destatis said.
The general government revenue dropped 1.1% in the first six months of the year. This was the first decline since 2004. Meanwhile, general government expenditure increased 3.5%.
Tax revenue, which forms half of the total revenue, declined 3.8% year-on-year, with corporate tax revenue plummeting 46%.
On the expenditure side, there was an 11.2% rise in subsidies, largely due to the Federal Employment Agency's reimbursement of social insurance contributions for short-time workers payable by enterprises.
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