For the federal government alone, the council forecasts €33.3 billion less in tax revenues for the five-year period.

“The results show that we need to strengthen revenues through higher economic growth. Only in this way can we gain financial leeway,” German finance minister Lars Klingbeil said, as he presented the projections.

Germany was the only member of the G7 advanced economies that failed to grow for the last two years. Reviving its sluggish economy will be one of the main tasks of its new government.

Klingbeil said he expected a slight improvement in tax revenues from 2027 onwards.

This year, the federal government is expected to receive €0.6 billion less in revenue, while Germany’s states are expected to get €1.1 billion more and the municipalities receive €3.5 billion less compared with the previous forecasts.

Klingbeil, who took office last week, said that by the end of June, the cabinet would approve the 2025 draft budget. It will include tax relief for companies to spur growth and a law to introduce a €500 billion infrastructure fund, he said.

After former chancellor Olaf Scholz’s coalition collapsed in November, the government ran out of time to pass the 2025 budget and Germany has had a provisional budget since the start of the year.

Once the draft budget is approved, the cabinet should adopt Germany’s draft budget for 2026 in July and discussions on it should start in parliament in September.

For 2026, Germany’s council of tax experts forcast €10.2 billion less for the federal government.