German Government's Welfare Payment Miscalculation

Billions in Welfare Payments Miscalculated by the German Federal Government

The German federal government has reportedly miscalculated billions in welfare payments, known as citizens’ money. Their initial estimate of €36 billion falls far short of the €46 billion that is reportedly needed. Documents obtained by the Bild newspaper reveal that the German labor ministry assumes an average of 2.9 million people are in need of welfare payments. This is stated in the documents for the “2025 budget,” dated from August 2024. However, the document indicates that the expenditure on standard rates and accommodation costs is expected to total €45.6 billion, which is significantly more than the €36 billion set in the 2025 citizen’s allowance budget.

Reactions to the Discrepancy

This huge discrepancy has sparked outrage. However, Hubertus Heil’s (SPD) labor ministry told Bild that the figures published “are not comprehensible and are methodologically based on several false assumptions… For example, a significant portion of the costs of accommodation are to be covered by the municipalities and are therefore not relevant to the federal budget in the amount stated.” Heil’s denial did not specify how far off Bild’s figures were, and notably, Bild was citing internal documents from the ministry itself. The huge sums paid out due to citizens’ money has become a politically explosive subject. This is due to the enormous costs it is placing on the German taxpayers, the German economy facing a worker shortage, and the huge number of foreigners taking advantage of this welfare system. Half of all recipients are foreigners and many of the others who are German citizens also have a migration background.

Immigration and Welfare Payments

MEP Maximilian Krah, who is a member of the AfD but remains unaffiliated in the European Parliament, wrote on X, “Immigration doesn’t work, not even economically. And if one were to differentiate between Germans based on their migration background, the picture would be even more devastating.” He shared a graph showing how few Germans are actually receiving welfare payments. However, Krah is not the only one questioning Heil’s numbers. The Federal Audit Office also cast doubt on Heil’s budget, stating that the labor ministry’s figures could only happen as budgeted if “600,000 people entitled to benefits would stop receiving them altogether” in 2025. They complained at the time that this was “not very realistic.”

Political Reactions

Other parties are also attacking Heil. CDU’s group vice-chairman Jens Spahn said the matter “bordered on deliberate deception.” Meanwhile, budget spokesman for the CDU/CSU parliamentary group, Christian Haase, said: “Heil is deliberately budgeting for false figures in order to conceal the problems with the citizens’ allowance.” Even the Free Democrats (FDP), who belong to the ruling government, slammed the budget figures. FDP politician Torsten Herbst said he expected “the labor minister to present realistic figures in his draft budget.” However, some of the harshest statements came from the AfD, which wrote on social media: “Labor Minister Hubertus Heil (SPD) suddenly presents a new budget gap of almost €10 billion in the citizen’s allowance. According to the minister’s documents, his department expects citizen’s allowance costs of almost €46 billion for 2025, although only €36 billion were officially reported.” The party is now recommending mass deportations totaling 1.3 million people to plug the budget hole, which it claims would bring the welfare payments back in line with the original sum budgeted.

Bottom Line

The issue of welfare payments and immigration in Germany has become a hot button issue, with various political parties voicing their concerns and criticisms. The miscalculation of billions in welfare payments by the German federal government has sparked significant debate and controversy. What are your thoughts on this matter? Do you think the government's miscalculation was a simple error or a deliberate attempt to mislead? Share your thoughts and this article with your friends. Remember, you can sign up for the Daily Briefing which is everyday at 6pm.