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German 2012 Deficit Will Be Smaller Than Forecast, Die Welt Says

Germany’s budget deficit this year will be smaller than previously forecast because of higher tax revenue, according to a supplementary budget to be passed this week, Die Welt reported, citing coalition officials.

The federal government will have to finance a budget gap of 31 billion euros ($39 billion), compared with the 34.8 billion euros previously forecast, the newspaper said. Germany has to pass the supplementary budget to account for 8.7 billion euros in paid-in capital to the European Stability Mechanism, the euro area’s bailout fund.

To contact the reporter on this story: Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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