Despite ongoing economic uncertainties, the federal and state governments can rely on increasing tax revenue to finance high expenditures for the energy transition, infrastructure measures, and military spending. In the first eight months of the year, tax revenues increased by 2.3 percent to nearly 540 billion euros. Experts predict that revenues for the full year 2024 could grow by more than four percent.

**In August alone, tax revenues amounted to almost 62 billion euros, an increase of 5.3 percent compared to the same month last year, according to the Federal Ministry of Finance's monthly report. Increases were particularly noted in the withholding tax on interest and capital gains as well as income tax, which has risen significantly due to higher salaries in many sectors. In contrast, corporate tax and value-added tax recorded declines due to weak consumer sentiment and economic challenges. New revenues also came from the European Union's energy crisis contribution.**

Despite the positive development in August, the situation remains uncertain. In July, revenues had plummeted by nearly eight percent, highlighting the high volatility of tax revenues this year. Experts from the Ministry of Finance express skepticism about short-term economic outlooks in the monthly report and point to a grim picture for the fall. The federal government plans to present new economic forecasts for the coming years on October 9.