Full annual effect

The term full annual effect is used in Germany in draft laws to represent the effect on the federal budget. The effect is stated for a full period of 12 months. The basis for the structure of the federal government's draft bills is defined by the joint rules of procedure of the federal ministries (GGO) within the framework of the legal impact assessment . The Federal Ministry of Finance (BMF) can then make general guidelines in consultation with the Ministry of the Interior (BMI).

According to the requirements of the BMF, the cost impact assessment should in principle be extended to the period of the financial plan.

If a measure does not become fully effective for a year outside of the financial plan, the annual effect in the year in which the measure is fully effective should also be specified in addition to the cost effect for the financial plan years.

For example, the federal government's draft law to “reduce cold progression” states that “implementation of the tariff adjustments will result in annual tax reductions totaling approx. 6 billion euros ". This effect refers to the case that stressful and relieving measures are fully effective at the same time.

If measures are spread over several budget years, the full annual effect is the sum of the measures for each year.

General example

As a fictitious example, the following table shows the excess and shortfalls in income for each fund year compared to 2013 . The child benefit increase is effective every year compared to 2013. In addition, there are additional or reduced income.

Full annual impact on the budget (in billion euros)
	Cash year
Single measure	2014	2015	2016	2017
Child benefit increase	−4.6	−4.6	−4.6	−4.6
Tax cut		−2.7	−2.7	−2.7
Tax increase			+1.5	+1.5
Sum of the individual measures	−4.6	−7.3	−5.8	−5.8
Full annual effect	−5.8
(-) = reduced income, (+) = additional income

When interpreting the table, it should be noted that the full effect must be determined in a full assessment period, even if measures are in force as a law, but only have a budgetary effect later. The tax relief will take effect from the 2014 assessment period, but it can only be claimed with the tax return. Then the cash effect will not come into effect until 2015. The tax increase will take effect in 2015, but will not take effect until 2016 in terms of cash.

Individual evidence

1. ^ "General requirements of the Federal Ministry of Finance for the presentation of the effects of legislative projects on income and expenditure of the public budget" of December 1, 2006
2. ↑ Working aid for legal impact assessment . ( Memento of the original from January 3, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF) BMI; Retrieved June 23, 2013  
3. ↑ cf. BT-Drs. 17/8683. (PDF; 211 kB) p. 2 and p. 8
4. ↑ Corporate tax reform - Steinbrück's tax reform concept . FAZ.net, March 14, 2007; Retrieved June 22, 2013
5. ↑ nominal, without taking price development into account
6. ↑ BT-Drs. 17/5125. (PDF; 1.4 MB) Table on p. 3

Please note the information on legal issues!