Budgets in German public funding

• § 23 Bundeshaushaltsordnung (BHO): grants may only be budgeted where the Federal Government has a substantial interest that cannot be met, or not to the necessary extent, without the grant.
• § 44 (1) BHO: grants may only be awarded under the conditions of § 23; the award must specify how proper use is proven and must establish a right of audit for the awarding body.
• The grant is set out in a Zuwendungsbescheid (grant decision); the Nebenbestimmungen (ancillary provisions, e.g. ANBest-P, NAFTR) are conditions within the meaning of § 36 Verwaltungsverfahrensgesetz and form part of the decision.
• BMFTR funding guidelines state that there is no entitlement to a grant; the awarding authority decides at its due discretion within available budget funds.
• The detailed rules are in the Allgemeine Verwaltungsvorschriften zur BHO (VV-BHO), current consolidated version as amended by the Federal Ministry of Finance circular of 25 June 2026.
• BMFTR states that the applicant in the university sector is always the university itself; institutes and individual researchers do not apply, because institutes lack legal capacity.

Sources: Bundeshaushaltsordnung, § 23 Zuwendungen (Bundesministerium der Justiz / gesetze-im-internet.de, current consolidated text, accessed 19 Oct 2026); Bundeshaushaltsordnung, § 44 Zuwendungen, Verwaltung von Mitteln oder Vermögensgegenständen (Bundesministerium der Justiz / gesetze-im-internet.de, current consolidated text, accessed 19 Oct 2026); Allgemeine Verwaltungsvorschriften zur Bundeshaushaltsordnung (VV-BHO) (Bundesministerium der Finanzen, version of BMF circular of 25 June 2026); Richtlinien für Zuwendungsanträge auf Ausgabenbasis (AZA/AZAP/AZV), BMFTR-Vordruck 0027a (BMFTR, valid for projects starting from 19 Apr 2018 (current form in the BMFTR form cabinet))

• Anteilfinanzierung (share financing): a fixed percentage or share of eligible expenditure, capped at a maximum amount (VV Nr. 2.2.1 zu § 44 BHO).
• Fehlbedarfsfinanzierung (deficit financing): covers the gap the recipient cannot close from own or third-party funds, capped at a maximum amount (VV Nr. 2.2.2).
• Festbetragsfinanzierung (fixed-amount financing): a fixed sum, possibly a multiple of a unit amount; not used where later third-party contributions or savings are foreseeable (VV Nr. 2.2.3).
• Vollfinanzierung (full financing): only by exception, where the purpose can only be achieved if the Federal Government bears all eligible expenditure; usually excluded where the recipient has an economic interest (VV Nr. 2.4).
• If total expenditure falls or new funding sources appear after award, the grant is reduced proportionally under share financing and by the full amount under deficit and full financing; this applies only to changes of more than EUR 500 (ANBest-P Nr. 2.1 and 2.2).
• Individual budget lines may be exceeded by up to 20 % if compensated by savings in other lines; this flexibility does not apply to fixed-amount financing (ANBest-P Nr. 1.2; NAFTR 2026 Nr. 2.1.1).
• VAT that can be deducted as input tax (§ 15 UStG) is not eligible expenditure (VV Nr. 2.6 zu § 44 BHO).

Sources: Allgemeine Verwaltungsvorschriften zur Bundeshaushaltsordnung (VV-BHO), VV zu § 44, Nr. 2 (Bundesministerium der Finanzen, version of BMF circular of 25 June 2026); Allgemeine Nebenbestimmungen für Zuwendungen zur Projektförderung (ANBest-P), Anlage 2 zur VV Nr. 5.1 zu § 44 BHO (Bundesministerium der Finanzen (text as published by the Bundeszentrale für politische Bildung), valid from 8 Sep 2026 (BMF circular of 7 Sep 2026))

• Universities, research and science institutions in their non-economic activities: basis is eligible project-related expenditure, which can be funded at up to 100 % subject to state aid rules (BMFTR call of 15 Jul 2026).
• Helmholtz centres and Fraunhofer-Gesellschaft: eligible project-related costs, on cost basis (same call).
• Companies and economic activities of research institutions: eligible project-related costs, as a rule funded at up to 50 % depending on proximity to application; an appropriate own contribution is required (same call).
• Application forms in easy-Online: AZA (grant on expenditure basis), AZAP (expenditure basis with Projektpauschale), AZV (allocation/administrative agreement); companies use AZK (Richtlinien 0027a and 0047a).
• Applications are prepared in the electronic system easy-Online; without a qualified electronic signature, the generated form must also be printed, signed and sent by post (AZA guideline, section B).
• Cost-basis grants follow the Leitsätze für die Preisermittlung auf Grund von Selbstkosten (PreisLS); NKFTR 2026 alternatively allows a 20 % flat overhead under the General Block Exemption Regulation (AGVO) or, for SMEs and Mittelstand, a 100 % surcharge on direct personnel costs, if approved in the grant decision (NKFTR 2026 Nr. 2.3 and 2.4).

Sources: Richtlinie zur Förderung von KI-Wertschöpfungsketten (Bekanntmachung vom 15. Juli 2026) (BMFTR, 15 Jul 2026, Bundesanzeiger 31 Jul 2026); Richtlinien für Zuwendungsanträge auf Ausgabenbasis (AZA/AZAP/AZV), BMFTR-Vordruck 0027a (BMFTR, valid for projects starting from 19 Apr 2018); Nebenbestimmungen für Zuwendungen auf Kostenbasis des BMFTR an gewerbliche Unternehmen für FuE-Vorhaben (NKFTR 2026), Vordruck 0347d (BMFTR, Stand 23 Mar 2026)

• Rate and basis: 20 % of the grant amount (Zuwendung, line F0864), paid in addition to the funded eligible expenditure (AZA guideline, F0865).
• Eligible: state and non-state universities and university hospitals, regardless of legal form, for research projects; the AZAP form is used, and the input fields are hidden for non-eligible applicants.
• Purpose: indirect project expenditure such as space, energy, IT infrastructure and administrative staff; the university decides on its use and no proof of use is required, as it is a genuine lump sum.
• The final amount follows the actual grant after the Verwendungsnachweis has been checked.
• Excluded per the AZA guideline: projects assigned to the Exzellenzinitiative, the Hochschulpakt (including Qualitätspakt Lehre) and the Professorinnenprogramm.
• BMFTR calls from 2026 (e.g. call of 15 Jul 2026) grant the 20 % for non-economic research at universities and university hospitals; some calls include the lump sum within the stated maximum grant.
• Other publicly funded institutions on expenditure basis (not state universities) may claim a flat overhead surcharge of up to 10 % of personnel expenditure if they show their infrastructure costs are at least that high (AZA guideline, F0842).

Sources: Richtlinien für Zuwendungsanträge auf Ausgabenbasis (AZA/AZAP/AZV), BMFTR-Vordruck 0027a, positions F0842, F0865, F0866 (BMFTR, valid for projects starting from 19 Apr 2018); Richtlinie zur Förderung von KI-Wertschöpfungsketten (Bekanntmachung vom 15. Juli 2026), section 5 (BMFTR, 15 Jul 2026)

• Personnel: staff must actually work on the project; the university's basic tasks are excluded, and staff must not be paid from a core-funded post at the same time; researchers are usually paid at E 13 TVöD/TV-L to start with.
• Besserstellungsverbot (ban on paying more than the public sector): applies where an applicant's total expenditure is mainly publicly funded; pay above TVöD is not allowed. State-funded public universities and university hospitals generally do not fall under the federal ban (AZA guideline; BMFTR Merkblatt of 26 Jan 2026).
• Equipment up to EUR 800 per item (F0831) and above EUR 800 per item (F0850); items over EUR 800 net must be listed with justification and inventoried; basic equipment (Grundausstattung) is not eligible.
• Travel: for mainly publicly funded applicants, reimbursement may not exceed that for comparable federal staff (Bundesreisekostengesetz); planning values of EUR 230 per one-day trip and EUR 100 per extra overnight stay may be used; actual costs are proven at the end.
• Subcontracts (F0835): R&D orders over EUR 100,000 per order must be explained and, if the contractor is not named in the application, need prior written BMFTR consent; fees for freelance work may be planned at EUR 65 to 125 per hour.
• Consumables, literature and other items (F0838 to F0841) may be planned as a flat sum of up to 10 % of personnel expenditure (F0842), but must be proven individually in the Verwendungsnachweis.
• Not eligible: auditors, unforeseen costs, reserves, use of the university's own computing centre.

Sources: Richtlinien für Zuwendungsanträge auf Ausgabenbasis (AZA/AZAP/AZV), BMFTR-Vordruck 0027a (BMFTR, valid for projects starting from 19 Apr 2018); Merkblatt zum Besserstellungsverbot, BMFTR-Vordruck 0029 (BMFTR, Stand 26 Jan 2026); Bundesreisekostengesetz (BRKG), § 1 (Bundesministerium der Justiz / gesetze-im-internet.de, current consolidated text, accessed 19 Oct 2026); NAFTR 2026, Nr. 2.3 (inventory threshold EUR 800) (BMFTR, Stand 23 Mar 2026)

• NAFTR 2026 (expenditure basis, BMFTR, Stand 23 Mar 2026) succeeds the NABF; NKFTR 2026 (cost basis, companies) succeeds the NKBF 2017; both are in the BMFTR form cabinet.
• ANBest-P (general federal provisions for project grants) received a new version valid from 8 Sep 2026; ANBest-Gk applies to local authorities, supplemented at BMFTR by BNBest-BMBF 98.
• Procurement: ANBest-P 2026 requires the UVgO (below-threshold procurement rules) only where the grant exceeds EUR 175,000 and the project is mainly publicly funded, with direct awards up to EUR 50,000; below that, prices must be compared and documented. NAFTR 2026 keeps EUR 100,000 as the threshold.
• Drawing funds: as a rule via the Abrufverfahren (call-off procedure, BNBest-Abruf); otherwise funds may only be requested for payments due soon after disbursement.
• Interest of 5 percentage points above the base rate can be charged if funds are not spent within six weeks of disbursement (ANBest-P Nr. 8.5; NAFTR 2026 Nr. 6.8).
• NAFTR 2026 also governs rights to results, use outside the EEA and Switzerland only with consent, and publication of results within nine months after the project ends.

Sources: Nebenbestimmungen für Zuwendungen auf Ausgabenbasis des BMFTR für FuE-Vorhaben (NAFTR 2026), Vordruck 0321d (BMFTR, Stand 23 Mar 2026); NKFTR 2026, Vordruck 0347d (BMFTR, Stand 23 Mar 2026); Formularschrank BMFTR (list of Nebenbestimmungen and guidelines) (BMFTR / Förderportal des Bundes, accessed 19 Oct 2026); ANBest-P, Anlage 2 zur VV Nr. 5.1 zu § 44 BHO (Bundesministerium der Finanzen (text as published by the Bundeszentrale für politische Bildung), valid from 8 Sep 2026 (BMF circular of 7 Sep 2026)); Richtlinie zur Förderung von KI-Wertschöpfungsketten, section 7 (applicable Nebenbestimmungen) (BMFTR, 15 Jul 2026)

• VV Nr. 1.3 zu § 44 BHO: project grants only for projects not yet started.
• The awarding authority may allow exceptions in individual cases (vorzeitiger Maßnahmebeginn, early start), provided the application was filed before the project began; ministries may set exceptions for whole funding areas with the Finance Ministry's agreement.
• Start of the project means, as a rule, concluding a supply or service contract attributable to its execution; for construction, planning, soil surveys and land purchase do not count as start unless they are the sole purpose.
• BMFTR: budgets may only include project-related expenditure caused within the project period; in special exceptions, at the earliest from receipt of the application by BMFTR or its project management agency.

Sources: VV-BHO, VV Nr. 1.3 zu § 44 (Bundesministerium der Finanzen, version of BMF circular of 25 June 2026); Richtlinien für Zuwendungsanträge auf Ausgabenbasis (AZA/AZAP/AZV), section AZA Finanzierung (BMFTR, valid for projects starting from 19 Apr 2018)

• Deckungsmittel (financing sources) include the recipient's own contribution, other grants, third-party contributions and project-related income; further grants or third-party funds must be reported without delay (NAFTR 2026 Nr. 2.1.4 and 2.1.5).
• Earmarked donations do not reduce the grant; new non-earmarked donations or entrance fees reduce it by 30 % of the amount used for the purpose (NAFTR 2026 Nr. 2.1.4.3).
• Verbundprojekte (joint projects): partners must regulate their cooperation in a written Kooperationsvereinbarung; basic agreement on BMFTR criteria must be shown before the funding decision (BMFTR-Vordruck 0110).
• Research organisations must ensure no indirect state aid flows to companies; under the EU RDI Framework (2022/C 414/01, point 29) this is the case if, for example, companies bear the full costs, or IPR is allocated in line with contributions, or research organisations receive a market price for IPR.
• Under AGVO Article 25, aid intensity for companies is up to 50 % for industrial research and 25 % for experimental development, with bonuses up to 80 %, e.g. for effective collaboration where research organisations bear at least 10 % of eligible costs and may publish their results.
• Recipients with both economic and non-economic activities must show a clear separation of the two by the time of the Verwendungsnachweis at the latest (NAFTR 2026 Nr. 4.5).

Sources: NAFTR 2026, Nr. 2.1 and 4.5 (BMFTR, Stand 23 Mar 2026); Richtlinie zur Förderung von KI-Wertschöpfungsketten, sections 4 and annex on state aid (BMFTR, 15 Jul 2026); Framework for State aid for research and development and innovation (2022/C 414/01) (European Commission, Official Journal of the EU, 28 Oct 2022)

• Sachbeihilfe (research grant) modules: Basismodul (personnel, direct costs, investments), Eigene Stelle, Vertretung, Rotationsstellen, plus Mercator-Fellow, project-specific workshops, science communication and a flat EUR 1,000 per year per applicant for equal-opportunity measures (Merkblatt 50.01, version 09/26); initial funding period up to three years.
• Basismodul structure: 1. personnel; 2. direct costs (equipment up to EUR 10,000, software and consumables, travel, guests, animals, other, publications); 3. investments, i.e. equipment above EUR 10,000 (Leitfaden 54.01).
• DFG personnel rates 2026 per year (full-time, employer gross): doctoral researcher EUR 81,600; postdoc EUR 88,200; other research staff with bachelor's degree EUR 67,200; non-research staff EUR 60,000; student assistants at local rates (DFG-Vordruck 60.12, 01/26).
• DFG personnel rates 2027 are already published: doctoral researcher EUR 83,700; postdoc EUR 90,600; other research staff EUR 69,000; non-research staff EUR 61,500 (60.12, 01/27).
• Programmpauschale: 22 % of direct project funds since 1 Jan 2016, for public or non-profit institutions in Germany that have adopted guidelines on its use; it may not be used to top up direct project funds and needs no proof of use (Verwendungsrichtlinien 2.00, 01/26, Nr. 3.6).
• The Joint Science Conference (GWK) agreed on 28 Nov 2025 to raise the Programmpauschale from 22 % to 25 % from 2027.

Sources: Merkblatt Programm Sachbeihilfe, DFG-Vordruck 50.01 (DFG, 09/26); Leitfaden für die Antragstellung – Projektanträge, DFG-Vordruck 54.01 (DFG, 09/26); Personalmittelsätze der DFG für das Jahr 2026, DFG-Vordruck 60.12 (DFG, 01/26); Personalmittelsätze der DFG für das Jahr 2027, DFG-Vordruck 60.12 (DFG, 01/27); Verwendungsrichtlinien, DFG-Vordruck 2.00 (DFG, 01/26); Programmpauschale (DFG, accessed 19 Oct 2026); DFG begrüßt GWK-Einigung zur Programmpauschale, Pressemitteilung Nr. 39 (DFG, 28 Nov 2025)

• Zwischennachweis (interim statement): within four months after the end of each budget year in which the purpose is not yet fulfilled; consists of a Sachbericht (narrative report) and a summary financial statement without list of receipts (ANBest-P Nr. 6.1, 6.3; NAFTR 2026 Nr. 4.4).
• Verwendungsnachweis (final statement): within six months after the purpose is fulfilled, at the latest by the end of the sixth month after the grant period; consists of a Sachbericht and a zahlenmäßiger Nachweis (financial statement) with a Belegliste (list of receipts) (ANBest-P Nr. 6.1, 6.2; NAFTR 2026 Nr. 4.1 to 4.3).
• At BMFTR, the final narrative report includes a short report and a detailed account, possibly a confidential part and a success-control report, submitted via profi-online where possible (NAFTR 2026 Nr. 4.2).
• Retention: receipts, procurement contracts and all related documents for five years after submitting the Verwendungsnachweis, unless tax or other law requires longer (ANBest-P Nr. 6.5; NAFTR 2026 Nr. 4.6).
• Audit: the awarding authority may request books and receipts and inspect on site; the Bundesrechnungshof (Federal Court of Audit) may audit grant recipients under §§ 91, 100 BHO.
• DFG: annual statements by 15 April (institutional account procedure), final statement at the latest 12 months after the end of the grant; records kept at least five years; the Federal and state courts of audit have audit rights (Verwendungsrichtlinien 2.00, 01/26).

Sources: ANBest-P, Nr. 6 and 7 (Bundesministerium der Finanzen (text as published by the Bundeszentrale für politische Bildung), valid from 8 Sep 2026); NAFTR 2026, Nr. 4 (BMFTR, Stand 23 Mar 2026); Bundeshaushaltsordnung, § 91 Prüfung bei Stellen außerhalb der Bundesverwaltung (Bundesministerium der Justiz / gesetze-im-internet.de, accessed 19 Oct 2026); Verwendungsrichtlinien, DFG-Vordruck 2.00, Nr. 8 and 9 (DFG, 01/26)

• Each state has its own Landeshaushaltsordnung with administrative rules to its § 44 or Art. 44 and its own ANBest-P; Bavaria, for example, publishes ANBest-P as Anlage 2 zu den VV zu Art. 44 BayHO, text valid from 1 Jun 2026.
• For a state grant, the thresholds and deadlines in the state's ANBest-P and in the grant decision apply; the federal ones do not.
• For EU programmes (Horizon Europe, Erasmus+ and others), funding rates, the 25 % indirect-cost flat rate, lump sums and unit costs are explained in the guide 'Funding rates and cost models'.

Sources: VV-BayHO: Anlage 2 zu den VV zu Art. 44 BayHO (ANBest-P) (Bayerische Staatskanzlei / BAYERN.RECHT, text valid from 1 Jun 2026)