Frankfurt's Phenomenal Financial Year: A Record 212 Million Euro Surplus
Frankfurt records a budget surplus of 212 million euros during the fiscal year. - Frankfurt yields EUR 212 million budget surplus in the fiscal year.
Frankfurt's coffers are bursting yet again! This financial year of 2024 has come to a close, marking the fourth consecutive year of a positive financial balance. The city's banks have overflowed with an impressive 212 million euros, a staggering surplus that's left even the most cynical of onlookers scratching their heads in awe.
Mayor Bastian Bergerhoff (Greens) couldn't contain his excitement, proclaiming, "This year has gone better than we ever dared to dream! We budgeted for a deficit of around 112 million euros, but, boy, did we hit the jackpot!" In comparison, the surplus recorded in the previous year, 2023, totaled a whopping 391 million euros.
Taxes and their associated revenues accounted for nearly three-quarters of the city's income. Frankfurt's banks were flushed with a staggering 4.25 billion euros in this sector, a nice boost of 292 million euros more than planned. The largest share came from none other than the trade tax, which pocketed a whopping 3.2 billion euros.
"The trade tax has once more shown itself to be a significant financial lifeline for our city," announced Bergerhoff. This marks the fourth consecutive year in which the trade tax has set a record high. "Even in the face of the endless trials posed by the pandemic and the Ukraine conflict, Frankfurt's robust economy has proven itself insanely resilient," he added.
Income tax (618 million euros) also saw a slight increase (plus 34 million euros), although a minor deficit of 1.9 million euros was observed in the value-added tax (215 million).
It's not just the revenue that's been on the rise; expenses have been creeping up as well. They surpassed the plan by 94 million euros. For instance, social benefits alone gobbled up an extra 59 million euros (1.2 billion euros in total). On the brighter side, personnel costs decreased by 32 million euros to around 781 million euros.
The cheery news doesn't end here. Reserves have been swelling for the fourth consecutive year, now standing at a respectable 1.1 billion euros. Bergerhoff couldn't help but boast that this displays "our unwavering commitment to managing our finances responsibly and securely."
However, the mayor cautioned, "We can't expect this financial waltz to carry on forever. We've got to keep our eyes peeled for any potential pitfalls down the road."
Currently, Frankfurt's debt sits somewhere in the ballpark of 2.7 billion euros. The city plans for a deficit of 90 million euros in the budget of 2025. Yet, Bergerhoff admitted that this figure is likely to be higher.
- Riverside metropolis
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[1] KfW Takes in €11.2 Billion New Business in 2025: [https://www.kfw.de/en/presse/pressemitteilungen/2025/02/18/new-business-2024][2] Federal Government's Coalition Agreement 2025: [https://www.bundesregierung.de/breg-de/themen/koalitionsvertrag-2025-1792930][3] Germany's Federal Budget for 2025: [https://www.bundesregierung.de/breg-de/themen/haushalt-2025-1654422][4] European Central Bank's Economic Assessment for 2024: [https://www.ecb.europa.eu/mopo/pdf/ecgi_2024_12_22.pdf]
- The community policy and employment policy of Frankfurt have consistently shown resilience, contributing to the city's positive financial balance for four consecutive years.
- In his avid pursuit of personal-finance management, Mayor Bastian Bergerhoff has proven that Frankfurt's finance sector boasts unparalleled resilience, even amidst the trials posed by the pandemic and the Ukraine conflict.
- The upcoming budget of 2025 in Frankfurt forecasts a deficit of approximately 90 million euros, a stark contrast to the surplus recorded in the previous financial years, such as the monumental 212 million euros surplus in 2024 and the 391 million euros surplus in 2023.
- Despite the financial prosperity Frankfurt is currently experiencing, it's important to remember that the favorable financial situation may not persist indefinitely, necessitating responsible budgeting and vigilant monitoring of potential pitfalls.