Hesse expects significantly fewer taxes due to the weak economic situation and persistent inflation

Hesse expects significantly fewer taxes due to the weak economic situation and persistent inflation

According to a report by www.hessenschau.de, Finance Minister Boddenberg (CDU) announced that tax revenue in Hesse would be significantly lower than expected. The weak economic situation and persistent inflation will lead to a shortfall in revenue of around one billion euros in 2023. This is in stark contrast to the original expectations in May, when only a shortfall in revenue of around 40 million euros was expected.

These developments have far-reaching effects, particularly on the market and the financial sector. Lower tax revenues mean that public spending may have to be cut and/or government debt may increase. This could lead to weaker demand for bonds and affect interest rates. In addition, companies in Hesse could be affected by reduced public investment and spending, which could affect their profits and share prices.

The lower tax revenues also have an impact on consumers in Hesse, as there may be a risk of savings in public services or tax increases. This could affect consumers' purchasing power and have a negative impact on the economy.

Overall, it is expected that the lower tax revenues in Hesse will lead to increased uncertainty on the market and pose challenges for the financial sector. It remains to be seen how the government and financial industry players will respond to these developments to mitigate the negative impact.