Indebtedness of municipalities and associations

Definition: If the adjusted expenditure exceeds the adjusted revenue, there is a deficit, which is usually compensated by borrowing or from reserves. For public budgets borrowing is only allowed for investments and investment support measures. The related long-term borrowing to finance investments is referred to as loans for investment or investment loans. The debt of municipal households cannot be assessed separately from the level of short-term loans. These so-called loans for liquidity protection or liquidity loans (up to 2008 in the cameeral accounting system referred to as cash loans or treasury reinforcement loans of municipalities) serve to research the daily solvency of the municipal fund. They are intended to compensate for the lack of revenue compared to the expenditure due in the financial planning and financial accounts. Liquidity loans must be compensated according to the daily payment history. Data source: IT.NRW, Debt Statistics, Quarterly Cash Statistics