It is positive that the state has more money available due to higher economic growth this year and the years to come than expected during last spring's tax forecast, emphasized Kambeck on WDR 5 "Morgenecho." However, these figures need to be examined critically. Upon closer inspection, it becomes apparent that this growth is mainly due to "the government spending such large amounts." The revenue office is investing, according to Kambeck, "sensibly in infrastructure and defence expenditures," and these additional expenditures are reflected in overall growth.

"The problem is that the private economy is not growing as we had hoped," clarified the DIHK tax expert. "Key impulses are still missing—we anticipate them, but much remains to be done concerning the framework conditions."

Reducing Electricity Prices Could Spur Growth

The announcements by Chancellor Friedrich Merz to finalize the announced electricity price reduction depending on the tax estimate results were described by Kambeck as a "good idea" because small and medium-sized enterprises would also benefit. "Of course, this would initially consume the expected additional revenue, but it would be a good measure since this could reduce energy costs—and this is one of the most important measures to stimulate private economic growth again."

The task for politicians now is to set the right priorities throughout the entire budget. In the planning up to 2030, the areas of social welfare, defence, and interest payments account for an increasing proportion, recalled the Head of the DIHK Department. These large expenditure blocks must also be curtailed. Kambeck: "We finance many things in the core budget with debt, so tasks need to be resolved to make framework conditions better overall and investment-oriented."

The Original Interview

The full audio contribution "Increased Tax Revenue: Economic Growth Higher" is available in the WDR Media Library (only available in German).