House of Representatives - Business and social associations criticize budget plan
Ahead of the planned decision on Berlin's 2024/2025 double budget in the House of Representatives on Thursday, both business and social associations are voicing criticism.
According to the Chamber of Industry and Commerce (IHK), the budget creates enormous uncertainty for the location. "The fact that the budget for the next two years includes a record volume is only possible due to considerable, but still largely undefined savings requirements, the temporary halt to all long-term financing commitments and the depletion of all remaining reserves," explained IHK President Sebastian Stietzel on Wednesday.
At the same time, there is no discernible focus on investments relevant to the future in terms of expenditure. Measures such as the increase in staff at the State Office for Immigration or the establishment of a digital citizens' office are to be welcomed. "Overall, however, from a business perspective, the budget lacks a comprehensive focus on investment in education as the city's engine for the future, on adequately equipping the administration and on an infrastructure that meets the needs of a metropolis."
In the view of the IHK, savings could be made, for example, by dispensing with the 29-euro ticket planned from 2024, which will cost a good half a billion euros. Stietzel spoke of an "expensive election gift". Money could also be saved by reducing bureaucracy.
The leading associations of Berlin's independent welfare organizations (LIGA) fear cuts to social institutions and projects. They are particularly concerned about the so-called flat-rate reduction in expenditure: according to the draft budget, expenditure of around 1.9 billion euros will have to be cut from the budget of around 40 billion euros per year in 2024 and 2025. Exactly how this is to be achieved remains to be seen. The social associations - like the districts - are now assuming that this will largely be at the expense of the social sector.
"For many people in Berlin, urgently needed help, advice and support will be cut," explained Diakonie board member Andrea U. Asch on behalf of all the associations in the LIGA. "The savings target is already being reflected in our providers' funding decisions for 2024." Drastic cuts originally planned in the draft budget have been reversed in almost all social areas. But: "The sword of Damocles hangs over all increases: a general underspend." Added to this are the general cost increases, as a result of which many social organizations have considerable funding gaps with no prospect of being covered.
The heads of the coalition parliamentary groups, Dirk Stettner (CDU) and Raed Saleh (SPD), had recently repeatedly emphasized that the new budget did not include any social cuts. On the contrary, the area of social affairs and cohesion is a focal point of the budget.
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- Despite the criticism from business and social associations, the 2024/2025 double budget in Germany, to be discussed in the House of Representatives in Berlin, contains numerous savings requirements and temporary financing halts.
- The Chamber of Industry and Commerce (IHK) in Germany argues that the budget lacks a sufficient focus on investment in education, administration, and infrastructure, despite some welcome measures like increasing staff at the State Office for Immigration.
- Social associations in Berlin, such as those in the LIGA, are worried about potential cuts to social institutions and projects due to a flat-rate reduction in expenditure, which could significantly impact services for vulnerable individuals.
- In contrast to the concerns raised by social associations, the coalition parliamentary group heads in Berlin, Dirk Stettner (CDU) and Raed Saleh (SPD), have emphasized that the new budget does not include any social cuts, and social affairs are a key focus area.
Source: www.stern.de
