Pandemic widens hole in German tax revenues as Scholz eyes more debt

The German government expects its tax revenues from 2020 until 2024 to come in 19.1 billion euros lower than previously projected as the coronavirus pandemic continues to erode public finances, a tax document showed on Thursday.

For all state levels, including state governments as well as municipalities, the hole in tax revenues is seen widening to 29.6 billion euros, according to the document compiled by finance ministry officials and other tax experts.

Finance Minister Olaf Scholz told Reuters on Monday that he was working on a budget for next year which would see Berlin taking on considerably more debt. This will require parliament to suspend debt limits in 2021 for the second time in two years.