Germany’s core and extra public budgets recorded a combined financing deficit of €98.8 billion in the first six months of 2026. Revenue reached €1.012 trillion, up about 2% year on year, while expenditure climbed roughly 6% to €1.111 trillion.

The Statistisches Bundesamt (Destatis) reported the preliminary figures on Friday, October 2. Every level of the public budget posted a shortfall, with the federal government accounting for by far the largest share.

Federal expenditure rose 9.8% to €325.5 billion as receipts fell 5% to €253.1 billion. That lifted the federal deficit to €72.3 billion from €30 billion a year earlier. Tax relief on electricity and motor fuels, together with weaker tobacco-tax receipts, reduced federal revenue.

Interest costs across the public sector jumped 21.2% to €31.2 billion. The states registered a €6.3 billion gap, while the municipal deficit remained at the record first-half level of €20.1 billion. Social insurance finances were nearly balanced, showing a shortfall of €68 million.