BERLIN (MktNews) - German total public sector debt stood at DM2,329.3 billion at the end of 2000, an increase of 1.7% over the previous year, the German Federal Statistics Office said Tuesday.
However, that figure reflects only DM34.7 billion in redemptions resulting from the auction of third generation mobile phone (UMTS) licences. The remaining DM64.7 billion of UMTS revenues were used for debt pay-down in the first quarter of 2001. Revenues from the UMTS auction amounted to DM99.4 billion.
Including the complete UMTS revenues Germany's total public sector budget registered a surplus of DM36.8 billion in 2000. Excluding UMTS-revenues the public sector would have posted a deficit of DM62.6 billion.
The total public sector budget -- which includes budgets for the federal, state and local level as well as the social insurance system -- is the criterion used to measure the compliance of a country's budgetary position under the European Union's Stability and Growth Pact.
In its latest German fiscal stability plan submitted to the European Commission in October, the German federal government forecast that total public sector budgets will show in 2000 a surplus of 1.5% of GDP, if UMTS-revenues are included, and a deficit of 1% of GDP, if UMTS-revenues are excluded. Furthermore, it forecast deficits of 1.5% of GDP in 2001, 1.0% in 2002, 0.5% in 2003 and a balanced budget in 2004.