In order to mitigate the consequences of the corona pandemic, the state government wants to spend more money. The corona crisis was declared a natural disaster again in order to suspend the debt brake.
The leaders of the green-black coalition in Baden-Württemberg have agreed on a supplementary budget of two billion euros. This was announced by the parliamentary group leaders Andreas Schwarz (Greens) and Manuel Hagel (CDU) on Tuesday evening after the meeting of the budget commission.
Over a billion euros in new debt?
More than half of the money is intended as a reserve for combating the pandemic and coping with the consequences of the corona crisis. In addition, the state wants to support schools, companies, universities and municipalities, it said. Apparently, the coalition wants to take on a total of 1.2 billion euros in new debt for the supplement.
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Prime Minister Winfried Kretschmann (Greens) wants to support municipalities and local public transport with 1.2 billion euros in new debt.
SWR
Baden-Württemberg’s Prime Minister Winfried Kretschmann (Greens) had previously spoken of a “narrow addendum”. He affirmed that the money will be used, among other things, to finance the program to close learning gaps among schoolchildren. But you also need high reserves in order to be prepared for the course of the pandemic, said Kretschmann.
Corona crisis declared a natural disaster again
The leaders of the Greens and the CDU agreed to once again declare the Corona crisis a natural disaster and thus temporarily suspend the debt brake. In this way, 950 million euros new loans are to be taken out. Among other things, the state wants to give the municipalities a hand, also by helping them with local public transport.
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Lost income and additional expenses: The municipalities in Baden-Württemberg are also suffering financially from the Corona crisis. They are asking for more support from the country.
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The parliamentary group leaders, Schwarz (Greens) and Hagel (CDU), spoke of a “strong signal” after the budget commission meeting. The state is capable of acting in the crisis and will remain so. Finance Minister Danyal Bayaz (Greens) said it was right to take out new loans. The fight against the pandemic remains the best financial policy, as it stabilizes the economy and tax revenue.
The first reading in the state parliament on the supplementary budget should be on July 14th, and this should be decided on July 23rd, shortly before the parliamentary summer break.
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