Soaring public debt in Germany expected to escalate substantially in 2024
In 2024, Germany's total public debt surpassed a significant milestone, reaching 2.51 trillion euros - a 2.6% increase from the previous year. This rise in debt affected all levels of government in the country.
The federal government was the largest contributor to this debt, with liabilities increasing to 1.73 trillion euros. The states also experienced an increase in debt levels, with local governments registering particularly sharp rises. The per capita debt burden reached a record high of approximately 30,062 euros, up 669 euros from the year before[1][2][4].
The states with the highest per capita debt were Bremen (33,934 Euros), Hamburg (17,571 Euros), and Berlin (18,173 Euros). On the other hand, Bavaria had the lowest per capita state debt among area states at 1,353 Euros[1].
Saxony had a per capita debt of 892 Euros (2023: 758 Euros) in 2024, while Thuringia had a per capita debt of 867 Euros (2023: 898 Euros)[1]. The Saarland had the highest per capita state debt among area states at 13,697 Euros[1].
Municipalities in Brandenburg had the lowest per capita debt in 2024 at 581 Euros (2023: 556 Euros). Municipal debt in Rhineland-Palatinate decreased from being the highest in 2022 to no longer being among the top 3 most indebted municipalities in 2024, with a per capita debt of 2,388 Euros (2024)[1].
One notable exception to the trend of increasing debt was the social security sector. Social security's total debt decreased significantly from 40 million Euros in 2023 to 10 million Euros at the end of 2024[1]. The per capita social security debt decreased from 0.48 Euros in 2023 to 0.12 Euros at the end of 2024[1]. This decrease is a significant change from the previous year[1].
The rising debt across all levels reflects fiscal pressures amid weak economic growth and declining revenues. The federal government’s 2026 draft budget projects a financing gap of 172 billion euros between 2027 and 2029, partly due to planned corporate tax cuts and compensations promised to states and municipalities for revenue losses[1][2].
Municipalities face a significant financial crisis, reportedly posting a deficit of 24.8 billion euros in 2024, tripling compared to previous years when they generally ran surpluses. This fiscal strain at the local level is not fully addressed by the federal budget[3].
Rising interest payments also contribute to the increasing debt burden, expected to grow significantly over the next few years[3].
In conclusion, the increase in public debt at the end of 2024 affected all government layers in Germany, with the federal government contributing the majority of the rise, but states and especially municipalities also seeing notable increases[1][2][3].
[1] Bundesrechnungshof (2025). Jahresabschlussbericht 2024. Berlin: Bundesrechnungshof. [2] Statistisches Bundesamt (2025). Staatliches Schuldenmanagement in Deutschland 2024. Wiesbaden: Statistisches Bundesamt. [3] Bundesministerium der Finanzen (2025). Haushaltsplan 2026. Berlin: Bundesministerium der Finanzen. [4] Bundesministerium der Finanzen (2025). Das deutsche Staatsschuldenmanagement im internationalen Vergleich 2024. Berlin: Bundesministerium der Finanzen.
In 2024, the federal government's significant increase in liabilities, amounting to 1.73 trillion euros, contributed to the overall rise in public debt. Business sectors, including states and municipalities, also experienced increases in debt levels, with local governments registering particularly sharp rises, leading to a per capita debt burden reaching a record high of approximately 30,062 euros.
