Household - Bremen parliament adopts supplementary budget
The Bremen Parliament passed the second supplementary budget on Wednesday. "This marks the last plenary session in 2023," wrote the parliament on the short messaging service X (formerly Twitter).
Bremen's second supplementary budget takes into account the latest guidelines on financing in emergencies. In certain emergencies, the government is allowed to make exceptions to the debt brake and take out new loans. However, there are strict rules for this. On November 15, the Federal Constitutional Court ruled that the federal government's second supplementary budget for 2021 was unconstitutional. Accordingly, emergency loans may not be reallocated or set aside for later years. Following the ruling, the Bremen Senate adjusted the state of Bremen's budget and the state parliament has now passed the law at second reading.
The previous declaration of emergency for the state's budget was supplemented by the after-effects of the coronavirus pandemic. Previously, an extraordinary emergency situation had been declared due to the climate and energy crisis as well as the effects of the war in Ukraine. These crises justify the exceptions to the debt brake.
Originally, the first supplementary budget for 2023 provided for emergency-related credit authorizations until 2027 with a total volume of three billion euros to mitigate the consequences of the war in Ukraine and the energy and climate crisis. Following the ruling of the Federal Constitutional Court, this is no longer possible.
In the second supplementary budget, 362 million euros are now budgeted exclusively in the state budget instead: 275 million euros for the war in Ukraine and its consequences and 86 million euros for the measures against the climate crisis based on this. Repayment of the emergency loans is planned over a period of 30 years from 2028.
The Bremen Fund reserves in the budgets of the state and city of Bremen from the previous year are to be released and used for a special repayment. For the year 2023, emergency funds of 251 million euros still required, for example to cushion the effects of the pandemic, will be set aside - 120 million euros for the state of Bremen and 131 million euros for the city of Bremen.
Senate communication on the Second Supplementary Budget Act 2023 Resolution recommendation of the government parliamentary groups Resolution recommendation of the Budget and Finance Committee Post on the resolution Communication on the supplementary budget of 5.12.23 Draft second law amending the Budget Act
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The Bremen Government relied on the Bremen Parliament to approve the supplementary budget, acknowledging the potential exceptions to the debt brake in certain emergencies. The Federal Constitutional Court previously deemed an earlier federal supplementary budget unconstitutional, setting strict rules for emergency loans. In the ongoing plenary session, the Bremen Parliament passed the second reading of the adjusted budget, taking into account the implications of the Federal Constitutional Court's ruling. As Twitter updates often reflect current events, the parliament mentioned the budget passage in a post on their account.
Source: www.stern.de
