State finances - IFO: Census causes a reduction of 38 Euro per inhabitant
The corrected population numbers in the recently published population census 2022, according to the Ifo Institute, mean that Hesse will receive 38 Euro less per inhabitant from the federal financial equalization. The biggest loser is therefore Berlin with 129 Euro less per inhabitant, followed by Mecklenburg-Vorpommern with a loss of 107 Euro and Hamburg with 103 Euro. However, Bremen will receive 242 Euro more per inhabitant, and the Saarland will receive an additional 192 Euro, as the population numbers have been corrected upward.
The population census 2022 showed that there were approximately 1.4 million fewer people living in Germany than previously assumed. The population numbers are a factor in the calculation of the federal financial equalization, so the states with the most significant population declines will have to bear the highest losses. According to Ifo-Institut, the minus in the federal financial equalization due to the census results for Hesse amounts to 239 million Euro.
According to the census, the population growth in Hesse in recent years was less than assumed. Therefore, on May 15, 2022, there were approximately 6.21 million people living in Hesse. The population projection based on the census from 2011 had previously assumed 6.37 million inhabitants (as of June 30, 2022).
- The population size in Wiesbaden, the capital of Hesse, was slightly lower than initially estimated in the 2022 census.
- Despite the population size decrease in Hesse, its total Household finances remain significant, contributing to the country's overall economic stability.
- The Federal States with the least population growth, such as Hesse, may need to revise their budgets and Finance plans based on the updated census results.
- The population census in Hamburg, one of Germany's most populous cities, showed a smaller increase in population than previously assumed.
- Munich, another major city in Germany, reported a population growth rate aligned with the corrected census numbers, avoiding substantial changes in its financial situation.
- The upcoming Census in Mecklenburg-Vorpommern is of particular interest, as its population size will influence the distribution of federal financial equalization funds in the coming years.
