Germany Cuts Tax Forecast by 19.6 Billion Euros on Pandemic (1)

Germany cut its tax revenue forecast for next year in a sign that Europe’s largest economy is struggling to recover from the coronavirus pandemic.

Germany expects overall government income of 772.9 billion euros ($919.1 billion) in 2021, 19.6 billion euros lower than the prior estimate in May, the Finance Ministry said on Thursday. The forecast for this year was largely unchanged at 717.7 billion euros.

To counter the fallout from the pandemic, Chancellor Angela Merkel’s government abandoned its balanced-budget policy and is set to increase new borrowing by about 218 billion euros this year, equivalent to more than 6% ...