Date 2025.05.05

In December 2024, we presented our 2024 Annual Report. This annual report is now supplemented by a complementary report. The complementary report contains a total of nine reporting items including examples in which federal financial management was not targeted, inefficient and ineffective.

The reporting items in this year’s complementary report show how the Federal Government failed to use taxpayers’ money in many areas in a targeted way or to adequately combat tax fraud and evasion. We found that the Federal Ministry of Finance does not do enough to strengthen the monitoring tool of cash register inspection and thus to address tax evasion in industries which use cash extensively. Furthermore, Germany risks not to keep pace with the fight against VAT fraud within the European Union. Without a national reporting system, there is the risk that VAT fraud would shift from other Member States to Germany.

With a view to the infrastructure, we also see significant room for improvement: The Federal Ministry for Digital and Transport risks to lose important waterways since the Ministry does not succeed in giving adequate priority to construction projects. The Ministry fails to actively steer its funding initiative to increase the attractiveness and accessibility of train stations. This results in delays. This way, the Ministry will not achieve the goals of its funding initiative.

In another reporting item, we look at millions invested by the Federal Ministry of Defence to purchase 3D printers. In doing so, the Federal Ministry of Defence wants to increase the readiness of the Bundeswehr but has failed to create the conditions required for 3D prints.

Annual report prepares decision on granting discharge to Federal Government

After the closure of each financial year, the Federal Government is held to account by Parliament and the Federal Council of Constituent States. Following submission of the annual financial accounts, Parliament and the Federal Council of Constituent States decide on granting discharge to the Federal Government for the respective financial year.

Our annual report provides an important basis for the discharge procedure. The report analyses the Federal Government’s revenue, expenditure, assets and liabilities. The report also provides recommendations on how to address shortcomings and on how to use budget funds in a more efficient and effective manner.

The current complementary report supplements the annual report by providing nine further reporting items that show where federal financial management needs improvement.

 The Public Accounts Committee is expected to deliberate on our complementary report until the summer recess. During the course of its deliberations, the Committee would usually request the Federal Government to implement our recommendations.

You can download the annual report here. Please note: the report is only available in German.