(MENAFN- AFP) The hole in Germany's public finances will not be as deep as first expected this year, the finance ministry said on Friday.
"On the basis of developments so far and in expectation for the traditionally strong results for December, it seems certain that not all of the planned net new borrowings of 25.1 billion euros earmarked for the year will need to be taken up," the ministry wrote in latest monthly economic report.
A government's net new borrowings amount to the public deficit.
In the 11 months to November, the accumulated deficit stood at 18.1 billion euros, the ministry calculated.
The forecast for a deficit of 25.1 billion euros for the full year dates back to June, when authorities were still totting up the cost of catastrophic floods that hit large swathes of the country in the spring.
However, the resilience of the German economy and low unemployment, as well as low interest rates have all helped top up the public coffers.
Next year, the deficit is projected to shrink to just 6.2 billion euros, the smallest in 40 years, and finance minister Wolfgang Schaeuble is pencilling in a small surplus for 2015.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.