Bremen government presents second supplementary budget for 2023

Finances - Bremen government presents second supplementary budget for 2023

The Bremen Senate has approved the draft of a second supplementary budget for the current year. In doing so, the state government is taking into account the requirements for emergency financing that the Federal Constitutional Court only recently specified, as a Senate spokesperson announced on Tuesday. These include that budget funds or credit authorizations that were taken out due to a declared emergency situation must actually be spent in the corresponding financial year. The second supplementary budget draft must now be approved by the Bremen parliament.

On November 15, the Federal Constitutional Court ruled that the federal government's second supplementary budget for 2021 is unconstitutional. "The recent requirements of the Federal Constitutional Court have been incorporated. We are thus putting the second supplementary budget for 2023 on a legally secure footing," said Bremen's Senator for Finance Björn Fecker. In view of the multiple crises, Bremen is dependent on the emergency funds for this year. Among other things, these funds were used to keep the hospitals running with a rescue package, to strengthen the pandemic resilience of daycare centers and schools and to advance the energy-efficient renovation of buildings.

Originally, the first supplementary budget for 2023 provided for emergency-related credit authorizations until 2027 totalling three billion euros to mitigate the consequences of the Ukraine war, including the energy crisis and the associated climate crisis. In the second supplementary budget, 362 million euros have now been earmarked exclusively for the state budget: 275 million euros for the war in Ukraine and its consequences and 86 million euros for the resulting measures to combat the climate crisis, as the Senate spokesperson explained.

In addition to the admission and care of refugees at 94 million euros, the largest items were the rescue package for the clinics at 60 million euros, increased energy prices at 55 million euros, energy-efficient building refurbishment at 49 million euros and low-carbon mobility at 28 million euros.

According to the Senate, the Bremen Fund reserves in the budgets of the state and city of Bremen from the previous year will be released and used for a special repayment. The second supplementary budget bill will now be forwarded to the Bremen Parliament. The supplementary budget bill must be passed by parliament at first and second reading before the end of the year and come into force. Repayment of the emergency loans is planned over a period of 30 years starting in 2028.

Press release Bremen Senate Ruling of the Federal Constitutional Court

Read also:

• Harz receives millions in aid after severe forest fires

1. The approval of the Bremen Senate for the second supplementary budget follows the recent judgments of the Federal Constitutional Court regarding emergency financing.
2. The Federal Constitutional Court previously declared the federal government's second supplementary budget for 2021 unconstitutional, leading to adjustments in the current year's budget.
3. In order to comply with the Federal Constitutional Court's judgments, the Household sector in Bremen has allocated funds and credit authorizations for emergency situations in the corresponding financial year.
4. Despite the constitutional issues, Bremen relies heavily on the supplementary budget to manage the multiple crises, including financing hospital operations, pandemic resilience in daycare centers and schools, and energy-efficient building renovations.

Source: www.stern.de