Indebtedness of municipalities and associations of municipalities

Definition: If adjusted expenditure exceeds the adjusted revenue, there is a deficit, which is usually offset by borrowing or reserves. For public budgets, borrowing is only allowed for investments and investment support measures. The associated long-term borrowings to finance investments are referred to as loans for investments or investment loans. The indebtedness of municipal households cannot be assessed separately from the level of short-term loans. These so-called loans to secure liquidity and/or liquidity loans (known as cash loans or cash amplification loans of the municipalities until 2008 in the central accounting system) serve to maintain the daily solvency of the municipal treasury. They are intended to compensate for the lack of revenue compared to the expenditure due in the financial programming and financial accounts. Liquidity loans are to be settled according to the daily payment history. Data source: IT.NRW, Debt statistics, Quarterly cash statistics