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German universities boost spending by 5% to €79.2 billion in 2024

Higher salaries and medical faculty demands push university budgets upward. Where is Germany's €79.2 billion investment in education really going?

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German Universities Spent €79.2 Billion in 2024, with Personnel Costs Dominating Expenditure

German universities boost spending by 5% to €79.2 billion in 2024

Wiesbaden. In 2024, Germany's public, church-affiliated, and private universities spent a total of €79.2 billion on teaching, research, and medical treatment, according to figures released Thursday by the Federal Statistical Office (Destatis). This marks a 5% increase compared to 2023.

Personnel costs remained the largest expense, accounting for €44.6 billion—or 56% of total spending—and rising by 6% year-on-year. Operating expenses also climbed by 6%, reaching €27.8 billion, while investment spending saw only a modest 0.7% increase, totaling €6.8 billion.

Medical faculties (including health sciences) at universities recorded a slightly above-average spending growth, allocating €39.2 billion—a 7% rise from 2023. Non-medical university departments spent €28.5 billion (up 4%), while universities of applied sciences, including administrative colleges, saw expenditures grow by 2.8%, reaching €10.3 billion.

Total university revenue in 2024 amounted to €43.5 billion, also up 5% from the previous year, matching the rate of expenditure growth. As a result, the share of self-financed spending—covered by revenue—remained stable at 55%, consistent with prior years.

Revenue from economic activities and assets grew at a slightly above-average rate, increasing by 6% to €29.4 billion. Medical faculties accounted for roughly 95% of this income, primarily through fees for patient care.

Universities secured €10.7 billion in third-party funding in 2024, a marginal 0.5% increase from 2023—significantly lower than the overall revenue growth. These funds primarily support research and development, particularly at universities with medical and health science programs. The federal government remained the largest third-party funder, contributing €3.4 billion (up 1.1%), followed by the German Research Foundation (DFG) with €3.2 billion (up 2.5%) and private industry with €1.7 billion (up 7.5%).

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