Interest-tax rate

The interest-tax rate (ZSQ) is an economic indicator with which one can assess the level of indebtedness of a regional authority .

General

States and their subdivisions (in Germany: federal government , states , municipalities and associations of municipalities ) come into consideration as regional authorities . These create budgets or balance sheets from which the ZSQ can be determined. The ZSQ indicates which part of the state income of a public budget is not available to finance public state expenditure or investments because it has to be used to service the interest expense .

detection

In cameralistics , the ZSQ shows the ratio of interest expenditure to tax income in a budget year; it indicates the proportion of tax revenue that has to be spent on interest. Tax revenue also includes tax-like charges such as coin receipts , casino taxes and other tax-like charges . The ZSQ shows the share of interest expenditure in tax revenue ( interest burden ratio ). It shows which portion of the tax revenue has to be used for interest payments and is not available for financing the core tasks.

${\displaystyle {\text{Zins-Steuer-Quote (Kameralistik)}}={\frac {\text{Zinsausgaben}}{\text{Steuereinnahmen}}}\,\cdot 100\,\%}$

In the double , the interest-tax ratio shows the ratio of interest expenses to tax income.

${\displaystyle {\text{Zins-Steuer-Quote (Doppik)}}={\frac {\text{Zinsaufwendungen}}{\text{Steuererträge}}}\,\cdot 100\,\%}$

If the interest expenses / interest expenses increase with constant tax income / tax income, the interest-tax ratio increases with the result that the local authority can no longer use an increasing part of its income for services of general interest .

meaning

The national debt , which is becoming increasingly dramatic at international level, can be measured using various debt ratios and assessed as part of the municipal annual financial statement analysis. In October 2006, the Federal Constitutional Court also used the interest-tax ratio as a key figure in its judgment in connection with the financial equalization in needy federal states. This could be used to map which part of the tax revenue is not available from the outset for the financing of public tasks , since it is to be used for interest expenses, unless their coverage is to be assigned to a correspondingly increased net new debt . The interest-tax ratios and the debt levels, especially in the new federal states and the old distressed federal states along with Schleswig-Holstein , also indicated precarious budgetary situations in the opinion of the Expert Council for the assessment of macroeconomic development . In the federal budget, the ZSQ in the 2015 budget was a reasonable 7.2%.

Web links

• BudgetSteuerung.de - Portal for public budget and finance management

Individual evidence

1. ↑ Hanno Beck / Aloys Prinz, National Debt: Causes, Consequences, Outsides , 2013, p. 13
2. ↑ BVerfG, judgment of October 19, 2006, Az .: 2 BvF 3/03
3. ↑ Council of Experts for the Assessment of Overall Economic Development, Annual Report 2004/2005 , p. 543 f.