Stuttgart (dpa/lsw) – The green-black state government approved its draft for the next double budget on Tuesday, but this is likely to change significantly over the course of the year. There are still numerous uncertainties and financial risks for the budget, said Finance Minister Danyal Bayaz (Greens) on Tuesday in Stuttgart. “Keeping on sight is the right thing to do.” It is still unclear whether the economy will only be dampened by the inflation and energy crisis or whether the country is “really going into a deep economic crisis”.
The “next milestone” for the budget is the tax estimate at the end of October. There is still hope for a significant plus, because the public sector also benefits from the fact that inflation increases revenue from VAT. Bayaz said that only after the estimate could one answer whether the country would be able to bear the billions in costs that the federal government’s relief package would result in.
With the decision, Grün-Schwarz started the parliamentary procedure, because the budget for the next two years is to be approved in December in the state parliament. The draft stipulates that no new debt should be taken on. The coalition is also planning new investments of 1.38 billion euros.
In addition, the state wants to create a risk buffer of 1.46 billion euros – this is intended to cushion additional costs for the state due to inflation and reduced income from tax cuts, for example in the catering trade. In addition, the country is setting aside another 1.3 billion euros for budgetary risks, where the government wants to make provisions, among other things, in the event that the costs for refugees and the consequences of the pandemic increase again.
