Länderfinanzen 2012: Konsolidierungserfolge bei vielen Ländern
At latest in 2020 all German state governments have to present structurally balanced budgets. To be able to implement this so-called debt brake, fiscal balances have to be separated into cyclical and structural components. In this paper we apply a method ('Aggregiertes Quotierungsverfahren') designed to identify the cyclical effects and calculate the structural deficits of the 16 Länder. Our calculations show that nine Länder had in 2012 a structurally balanced budget or were even in surplus. By contrast, high structural deficits relative to adjusted expenditure were recorded in Saarland and Bremen, which receive consolidation assistance, but also in Hamburg, Hesse and North Rhine-Westphalia.
Gebhardt, H. and N. Möhring (2013), Länderfinanzen 2012: Konsolidierungserfolge bei vielen Ländern. RWI Konjunkturberichte, 64, 2, 35-44