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State goes into reserves – partial debt relief for university treatment

Mainz (dpa/lrs) – The country Rhineland-Palatinate he will significantly increase his expenses in the coming year and, among other things, he will reduce the debt level of the Mainz University Medical Center which is very deficient. The draft for the double budget for the next two years approved by the cabinet in Mainz also sees more Money for the cities. A sharp drop in reserves is expected for 2025. The double budget is “political will expressed in numbers,” said Prime Minister Alexander Schweitzer (SPD) when presenting the draft of the traffic light coalition.

400 million euros for partial debt relief for the University Medical Center

The Mainz University Medical Center is to receive 400 million euros as part of the partial debt relief planned for 2025. That is about half of the household’s debt, explained Finance Minister Doris Ahnen (SPD). In addition, state subsidies for research and teaching for the house would be increased. “We want to give the new board the best possible start.” By the end of the year, they should develop a concept that could reduce the deficit to zero in five years.

The credit limit previously provided by Mainz University Medicine was almost exhausted, and the state is now aiming to provide partial debt relief (archive photo). (Photo: Tim Würz/dpa)

It is expected that the amount of municipal financial equity (KFA) in the double budget will increase by around 349 million euros compared to 2024 and will exceed the 4 billion euro mark for the first time in 2026. a new financing program worth 200 million euros intended to support selected cities with investments. “It’s not going to be an irrigation project,” Schweitzer said. Details would follow. The budgetary resources for this have now been created. The Ministry of Education has the largest single budget among the ministries. This sector alone will cost 6.44 billion euros in 2025, and 6.51 billion in 2026.

Police personnel should be increased

The police force is to be further increased in personnel. After the “target number” of 10,000 trained police officers in the country, measured in terms of headcount, is reached in 2024, this should continue to grow, Schweitzer said. There are nearly 200 new positions planned in the judiciary, of which 36 are for judges and public prosecutors. This should also fight against political crime and send a signal against hate crime, Schweitzer said.

The police are to be increased in staff, and new positions in the judiciary are also planned, says Prime Minister Schweitzer (archive photo). (Photo: Boris Roessler/dpa)

It is planned to strengthen another 38 positions to the new state office for fire ​​and disaster control planned after the Ahrtal flood disaster, which will be launched gradually. About 22 million euros have been earmarked for material costs to this authority for each of the two years of the double budget. The state office intends to pool expertise to support cities in civil defense at various levels.

Spaces in reception centers should be kept constant

The Ministry of Family, Women, Culture and Integration Katharina Binz (Greens) is expected to spend more than 201 million euros in the coming year and then around 759 million euros in total, of which 770 million total in 2026. After spending just under 154 million euros in 2024, around 227 million are earmarked for migration and integration next year, and just under 224 million in 2026. Explained Binz that the places in the country’s reception centers that were expanded during the war in Ukraine should be kept. Cities should be given even more support in accommodating refugees.

Economy Minister Daniela Schmitt (FDP) explained that around 500 million euros should be available for roads, bridges and cycle paths – more than ever before. About 184 million euros of this is for the city’s transport network. Major projects include the renovation of the high road in Ludwigshafen or the new construction of the Pfaffendorfer Bridge in Koblenz.

Finance Minister Doris Ahnen explained that according to forecasts, it will take some time before the “economic situation returns to normal” (archive photo). (Photo: Thomas Frey/dpa)

Finance Minister Ahnen explained that the draft for the double budget falls to a level of economic weakness that has been going on for two years. Projections assumed that it would take some time for “normal economic conditions” to be achieved again.

Tax revenues of 19.17 billion euros in 2025 and 19.85 billion euros in 2026 are calculated – slightly more than the 18.02 billion assumed for this year.

Costs will increase significantly from 2024 to 2025

Spending is expected to increase significantly first, from a calculation of 22.73 billion this year to 25.16 billion in 2025 – that’s more than ten percent more – and then 25.45 billion in 2026. The big increase can be the 2025 partially explained by the partial medical debt relief of the university and the new program for the municipalities. According to Ahnen, about 37 percent of the state’s spending on workers accounts for about 37 percent. In the education sector, the state expects 1,508 additional jobs in 2025 and 404 additional jobs in 2026. According to Ahnen, 948 and 225 of these will be in schools.

The bottom line is that a negative financing balance of around 934 million euros is expected next year, with no obligation to repay debt. The plan is to withdraw a total of 1.18 billion euros from reserves in 2025. In 2026, a net loan of 363.0 million euros is expected.

After the decision of the cabinet, it is now expected that the draft for the double budget will go to the state parliament in the middle of September, which will deal with the figures. The last word will be at the full session of the Parliament as the legislator of the budget.

Criticism from the ranks of the opposition

There has already been criticism from opposition representatives. The financial policy spokesman of the CDU parliamentary group, Christof Reichert, continues to see inadequate funding for municipalities, too little spending on education and a backlog of infrastructure renewal. He also missed words about investment support for hospitals. AfD parliamentary group budget policy spokeswoman Iris Nieland said that the 2025 budget would only be financed by a deep reduction in reserves and in 2026 with new debt, it shows that the traffic light is far from bad budget policy.

2024-09-03 13:12:20
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