state government - Consultations on household budgets in Sachsen-Anhalt are drawn out
The consultations of the Landesregierung on the new budget are dragging on. The departments must now submit additional savings proposals by the end of July, as the draft for 2025/2026 is not yet balanced. "The savings proposals made with the ministers and ministers could not contribute to the budget balance," a spokesperson for the Finance Ministry said in response to a query. The cabinet is scheduled to discuss further steps on August 6.
This development was expected by many in the black-red-yellow coalition - a tough fight to reach a balanced budget. The Finance Ministry refuses to provide specific numbers. The previously mentioned savings proposals fell "far short" of balancing revenues and expenditures, it was stated. In June, applications exceeded available funds by more than three billion Euros for the two years.
Expenditures will be reviewed
"The departments are asked to share the revised applications with the Ministry of Finance by July 30, 2024," said a spokesperson for Finance Minister Michael Richter (CDU). For voluntary programs, it will be checked whether they can be waived, reduced, or postponed. For other programs, it will be examined if and to what extent financing from EU funds is possible.
To cover the year of the state election in 2026, a budget for the next two years is to be established. With the financed projects, the coalition partners can once again clearly highlight their priorities before the election. Previously, the state had planned for a volume of approximately 14 billion Euros per year.
"We must ask ourselves: What can we still afford? That must be clearly stated," Richter said in June. "We must understand that we can only agree on what we can collectively stand for and where we can't anymore. The public also has much more understanding for this than is often assumed."
- The regional government in Saxony-Anhalt has sought assistance from a household consulting firm, BMF, to help balance their budget due to the challenging financial situation.
- During the state parliament debates, the topic of household consulting and the need for budget balancing, led by Finance Minister Michael Richter, was brought to light.
- Despite the intervention of household consulting experts from BMF, the State parliament's budget, including household expenditures, remains unbalanced, necessitating further financial adjustments.
- As a result of the financial challenges, the Regional Government is considering reviewing household financing schemes in collaboration with the EU, under the guidance of BMF and Finance Minister Michael Richter.
