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  Federal subsidy rate rises to 2018 News | Bit Updates
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Federal subsidy rate rises to 2018 News

Wednesday, August 23rd, 2017 | bitcoin updates

By Andreas Kißler BERLIN (Dow Jones) – Since 2015, the federal government has given a total of around 4.3 billion more subsidies to the private sector and thus also increased the subsidy rate in its budget. This is evident from the Federal Government's subvention report, which was adopted by the Cabinet. The subsidy volume of the Federal Government's grants and tax incentives will thus rise from 20.9 billion euros in 2015 to a total of 25.2 billion euros in 2018, as the Treasury reported. Although the Federal Government's subsidy rate remained at 0.7 percent of GDP in 2016 due to the positive trend in gross domestic product (GDP), it was "at the low level of recent years" according to the Ministry. However, for the 2017 and 2018 financial years, "a slight increase to 0.8 per cent" appears to be the case. Ministry of Treasury checks reductions

 According to the report, which is published every two years, the increase in the subsidy volume by EUR 4.3 billion is "mainly due to an increase in federal financial aid in priority areas". These increased by around 3.6 billion euros in the reporting period. Compared with the expenditure of 2016, the budgetary amounts for the year 2017 would be EUR 3.0 billion higher. The increase had largely resulted from the increase in the Federal Government's future investments in the areas of broadband expansion, energy-related building renovation and energy efficiency, which had already been laid down in budgetary headings 2016. In addition, 11 new grants, including pump and heating optimization and subsidies for the purchase of electric cars, were introduced. According to the report, the subsidies for the commercial sector are expected to rise by EUR 11 billion between 2015 and 2018 by EUR 2.4 billion to EUR 13.4 billion, representing a share of 53.1 percent of total subsidies in 2018. This is attributable to a substantial increase in grants for energy saving and renewable energies. However, the Treasury wants to review tax exemptions. Minister of Peace, Friederike von Tiesenhausen, said at a press conference that "we are currently evaluating tax breaks". To this end, an expert opinion had been commissioned in which a total of 32 tax incentives were examined. Contact the author: andreas.kissler@wsj.com Dow Jones Newswires Dow Jones Newswires Dow Jones & Company, Inc. (Dow Jones Newswires) 07 53 AM EDT 08-23-17


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