Saxony-Anhalt expects lower tax revenues

Magdeburg (dpa/sa) – Economic development in Germany also has an impact on the budget Saxony-Anhalt. Finance Minister Michael Richter (CDU) expects around 692 million euros less income for this year than was originally planned for the budget.

Compared to the current draft budget for the next two years, the Ministry of Finance is now accepting almost 400 million euros less income per year than previously expected. On the one hand, this is due to the weak economy, but on the other hand, it is also due to lower allocations from the federal government.

However, Finance Minister Richter does not see a strong need for action to make further savings in the current draft budget. The minimum income could be financed through loans. “This is debt we’re creating first,” Richter said. These would have to be repaid in better times when the economy picks up again. Without additional growth and without additional tax revenue, it will be more difficult to repay loans in the future.

Finance Minister Richter: “We will not be able to continue like this.”

In addition, there is no new area now as a result of the tax estimate. “Overall, we’ve become a challenger here,” Richter said. “We will not be able to continue like this. ” Every department must now take another look at what it can do in the next two years until the end of the legislative period.

Last week, the state government submitted the draft for the 2025 and 2026 budget years to the state parliament. An administrative hiring freeze is intended to save staff and costs in the coming years.