German army 'wasting millions of taxpayer euros on sunscreen and lip balm' The auditors questioned the wisdom of a reduction in the number of tax office auditing staff, which led to a reduction in the number of audits and a corresponding drop in income tax revenues from €911m in 2005 to €787m in 2010. "It's a question of cost effectiveness," said Engels. That doesn't always mean the cheapest way is the best way but rather it's important to keep the cost-benefit ratio in mind. The federal government could reduce its own deficit and the national debt at a faster pace by eliminating some of the waste, the report said. "Net new borrowing could be reduced even further this year," said Engels, referring to the government's recent announcement that net new borrowing would be €17.1bn in 2013. The government expects to have a balanced budget in 2014. The auditors cited one federal agency that had 4,350 computers but only 1,800 workers.