"CDU Issues Alert on Monetary Shortfall: Approaching Billions Due to Lighting-Related Tricks in Public Finance"
"Based on the growth figures from 2022 to 2024, the proposed budget for 2025's citizen's allowance expenditure should be 45 billion euros, not the current 36 billion euros," Haase pointed out. He highlighted that, like many other sections of the budget, there's manipulation with the citizen's allowance to create a somewhat legally compliant draft budget. He slammed this, stating it has no relationship with sound budgeting policies.
For 2023, the federal government is forecasting a total of 41.3 billion euros in expenditures for citizen's allowance recipients in their supplementary budget. Yet, for 2025, they only expect expenditures of 36 billion euros.
Jens Spahn (CDU), the deputy leader of the CDU/CSU parliamentary group, also accused the government of employing a "flimsy financial trick" in relation to the 2025 budget plan. To lower expenditures by around five billion euros, "hundreds of thousands more would need to be employed," Spahn told "Bild" newspaper. However, this seems highly unlikely.
"The job market isn't kicking into gear, the citizen's allowance isn't providing enough motivation to work. The traffic light coalition is relying on the citizen's allowance," Spahn criticized. Consequently, he suggested it should be abolished.
The Hartz IV system was replaced by the citizen's allowance on January 1, 2023. This change resulted in higher basic rates, improved earning opportunities, better support for qualification and further training, and milder penalties. The SPD played a significant role in pushing through this change.
Despite the expected decrease in citizen's allowance expenditures from 41.3 billion euros in 2023 to 36 billion euros in 2025, as included in the federal government's forecast, a significant financial gap of approximately 5.3 billion euros might emerge. This gap, if not addressed, could potentially impact the proposed budget for 2025, exacerbating the concerns raised about manipulation and legal compliance.
