The backbone of society & the economy
Public finance is the backbone of government activity. It is known to the public in the form of taxes, social security contributions and fees.
In Germany, the Federal Government, the “Länder”, local authorities and social security funds use public funding to finance their activities, for example, schools, hospitals and roads. The public (digital) infrastructure is a central basis for business activities and sustainable growth. Through income redistribution, the government supports social cohesion and confidence in the social market economy.
Future challenges for the public sector
The public sector is facing a variety of challenges. An aging population increases expenditure on pensions, health and long-term care. Climate change and digitization require investments in new technology and education. For the transition into a digital, green economy, the tax and transfer system must be reformed, for instance to cushion social costs.
This gives rise to several questions that must be answered on a profound basis and with foresight:
- Who profits from carbon taxes?
- What are the consequences of demographic change for intergenerational justice?
- How is the national debt developing in Germany and internationally?
- What effects will increasing social security contributions have on employment?
- How can local authorities prepare their budgets for the challenges of the future?
Public finance: A selection of our services
With our models, we analyze the distributional effects of tax reforms, put numbers on investment needs and quantify long-term effects on public finance.
We examine the capacity and need for reform of public finance.
Assessment of redistribution effects
We determine the redistribution effects of the tax and transfer systems.
We assess the financing of public investments against the backdrop of the megatrends demography, climate change and digitization.
Strategic fiscal consolidation
We advise local players on how to achieve sustainable strategic consolidation of their budgets.
Do you have questions?
Your contact at Prognos
Prognos – Providing Orientation.
Prognos is one of the oldest economic research centres in Europe. Founded at the University of Basel, Prognos experts have been conducting research for a wide range of clients from the public and private sectors since 1959 – politically independent, scientifically sound.Learn more