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Budget Review: Germany
Budgeting in Germany at the federal level is conducted in the basis of a well-developed
legal, constitutional and administrative framework. The German budget process is
robust and encompasses all elements of modern budgeting with significant reforms
continuously being implemented . As a result, Germany has achieved an enviable fiscal
performance in recent years. Surprisingly, little literature and research is available on
the German budget process internationally. GOV/BUD's recently conducted budget
review of Germany aims to present a concise overview of budgeting in Germany.
Note on terminology
In this report…
“Federation”
refers to the federal level of government, as distinct from the states/regions
known as the Länder
“National”
(e.g. “national budgeting system”) includes both the federal and the Länder levels
“Government entity”
refers to either the federation or a particular Land as the context may
require.

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BUDGET REVIEW: GERMANY
OECD JOURNAL ON BUDGETING – VOLUME 2014/2 © OECD 2015
10
Summary overview
1. Budgeting in Germany at the federal level is conducted on the basis of a well-
developed legal, constitutional and administrative framework.
The constitution or Basic
Law includes foundational principles for managing public finances and the budget process,
and national and federal laws provide for all of the key principles of public financial
management that are traditionally found in OECD countries – annuality, universality,
fungibility, parliamentary approval, etc. This framework, which is respected and enforced
by all participants in the budget process, ensures that there is a sound and stable basis
within which the annual and multi-annual procedures are conducted.