Census 2022 - Census deprives Lower Saxony of millions of euros
The state of Lower Saxony will have to forego a significant amount of money because it has fewer inhabitants than assumed. The Finance Ministry expects annual shortfalls in the low triple-digit millions range. A more precise figure was not possible, according to a spokesperson. Both the NDR and the "Hannoversche Allgemeine Zeitung" reported this.
The background is the Census 2022 data collection. It was found that there are approximately 7.94 million people living in Lower Saxony. That's about 170,000 fewer than previously calculated.
Lower Saxony faces repayments
Lower Saxony's share of the total population in Germany decreased from 9.65 to 9.6 percent as a result. This negatively affects the state's tax revenues through the federal financial equalization. "The shortfalls are due in part to reduced sales tax contributions and in part to lower federal supplementary grants," explained the ministry.
The full impact of the new population figures for this year will be felt. The Census will only be taken into account proportionally for the final settlement of the years 2022 and 2023. In order to prevent excessive financial burden on the affected states, the ministry spokesperson said. Nevertheless, Lower Saxony faces repayments for previous years - the exact when and how much is still open.
The Census 2022 data revealed a discrepancy of 170,000 inhabitants, causing Lower Saxony to revise its population estimate down to 7.94 million. This revelation led the BMF to anticipate annual financial shortfalls in the millions, affecting the state's finances substantially. The "Hannoversche Allgemeine Zeitung" and NDR reported on these financial implications, highlighting their impact on the state's budget.
Lower Saxony's repayment obligations increase due to the revised population data, as a lower population means less tax revenue and federal financial equalization grants. The ministry attributed part of the financial shortfalls to reduced sales tax contributions and reduced federal supplementary grants.
The state government will need to allocate resources to address these financial challenges. Despite the decision to account for the Census data proportionally for the final settlement of the years 2022 and 2023, Lower Saxony is still liable for repayments for previous years. The ministry spokesperson has yet to provide a specific timeline and exact amount for the upcoming repayments.
