Financial equalization - Census does not influence Saxony-Anhalt's financial equalization until 2025
The population figures from the 2022 census will not influence the financial equalization for Saxony-Anhalt's communes until 2025. Regarding the anticipated distribution of the financial equalization mass to individual communes for the year 2025, statements cannot be made at this time due to the lack of definitive assessment criteria, Saxony-Anhalt's Finance Ministry stated in response to an inquiry. For the calculation of the financial equalization 2024, population figures based on the 2011 census will still be used.
Financial implications of lower population numbers
According to the 2022 census, nearly 40,000 fewer people live in Saxony-Anhalt than previously assumed. This discrepancy of 1.8% means that the state will receive approximately 15 to 25 million Euros less annually from the federal government. These losses fell within the usual fluctuations of the state finances and, according to the Finance Ministry, do not necessitate significant adjustments to the state budget and "therefore no financial political adjustment". Nationwide, the population was 1.6% lower than previously assumed.
According to the State Statistical Office, the proportion of Saxony-Anhalters and Saxony-Anhalteres in the overall German population changed only slightly, from 2.600% (2011) to 2.595% (2022).
City of Halle plans objection to census results
In particular, the city of Halle lost inhabitants according to the latest census results. According to the data, there were slightly over 226,500 people living in the city at the reference date - around six percent fewer than initially assumed. However, according to the city, the census process is not yet complete. "Communes will be heard on the census result from September 2024," it was stated in the ministry. The city intends "to prepare a statement and present its arguments for the necessary correction of the preliminary results". From 2025, the determination of the official population figures is expected. The city plans to receive allocations from the Financial Equalization Law of the state in the amount of around 289.6 million Euros for the coming year.
Objective of the Financial Equalization Law
The Financial Equalization Law regulates the financial relationships between the state and the communes. The goal of the law is to distribute money fairly so that no commune is disadvantaged.
- The population data from the 2022 census will not impact the financial equalization for Saxony-Anhalt's municipalities until 2025, according to the state's Finance Ministry.
- For the calculation of the financial equalization in 2024, population figures based on the 2011 census will still be utilized.
- The city of Halle plans to object to the census results due to a discrepancy of around six percent in the assumed and actual population numbers.
- The Financial Equalization Law in Germany aims to distribute funds fairly, ensuring that no commune faces disadvantage due to financial relationships with the state.
- The BMF (Federal Ministry of Finance) will use the population figures from the 2022 census to distribute financial equalization funds to the federal states starting from 2025.
- In light of lower population numbers, Saxony-Anhalt will receive approximately 15 to 25 million Euros less annually from the federal government in financial equalization funds.
