Home » today » Business » Berlin’s Finance Senator predicts less spending in the future

Berlin’s Finance Senator predicts less spending in the future

Berlin (dpa/bb) – According to Finance Senator Stefan Evers, Berlin will be able to spend less money in the future than before. “With the double budget for next year and the year after that, we are once again resolutely and with all our strength against the challenges of our time,” said the CDU politician on Tuesday after the Senate meeting. “We are relieving the burden on people in the crisis, we are investing in the future and ensuring that Berlin is well prepared for the future. But it is also clear: Berlin will have to function better with less money in the future.”

Evers thinks that’s realistic: “It’s possible if we invest wisely, budget responsibly and set clear priorities.” Everyone would have to pull together to make this effort. A return to normal mode is essential.

According to the tax administration’s assessment, inflation alone is causing higher financing requirements while public performance remains the same. The development of interest rates also leads to a noticeable additional financial burden. The economy, labor market and budget have shown themselves to be resilient in the past years of crisis. However, the financial policy framework has deteriorated.

Evers said Germany ranks last among industrialized countries in terms of economic development. This would also reduce the scope for budgetary policy.

On Tuesday, the Senate decided on the medium-term financial planning for the years 2023 to 2027. According to the financial administration, the goal is to normalize the spending volume again with the next double budget in 2026/27. The state parliament is currently discussing the double budget for 2024/2025, which is to be passed in the House of Representatives by the end of the year.

The Senate’s draft budget includes so-called adjusted spending of 38.63 billion euros in 2024 and 39.87 billion euros in 2025. According to Evers, restraint is called for for the double budget after that. Around 3 billion euros would have to be deducted from the current spending level in 2026 and around 3.3 billion euros in 2027.

At the same time, investment planning for the coming years was decided. According to the information, the share of investments in the state budget is on average 9.5 percent. The largest individual share of the investment planning until 2027 is school construction at around four billion euros. Evers said after the Senate meeting that priorities also had to be set when it came to investments.

© dpa-infocom, dpa:230919-99-251474/3

2023-09-19 17:06:21
#future #Berlin #function #money

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.