Magdeburg (dpa/sa) – The state of Saxony-Anhalt is heading for a deficit of around 1.15 billion euros in the next few years due to increasing total expenditure. As the State Chancellery announced on Tuesday, according to the medium-term financial planning for 2024, there is a need for consolidation of around 470 million euros. In 2025 and 2026 it will be around 340 million euros each.
In particular, increasing personnel expenses, higher investments and higher interest expenses have an impact. “In principle, the need for consolidation can be met both by a more positive development of income and by a reduction in expenditure,” says the report on medium-term financial planning that the Ministry of Finance has published on the Internet. Should tax revenues increase more than expected, the need for consolidation would be reduced accordingly.
According to the information, Saxony-Anhalt finally used up all reserves at the end of 2022. In order to create a balanced budget in the years 2024 to 2026, “expenditure adjustments in the state budget are unavoidable,” says the report. The medium-term financial plan shows the state’s income and expenditure for a period of five years.
Finance Minister Michael Richter (CDU) explained that the goal must be “to gradually reduce the high level of debt and to create provisions for crises.” Tasks need to be prioritized.
The country’s debt had recently risen to a new high of 23.4 billion euros. Interest rates are currently rising. Richter had warned in recent months that one must therefore expect significantly higher loads in the next few years. That will reduce the scope for the budget.
