Household - Finance Minister Lange: Not saving until it 'squishes''
Brandenburgan Finance Minister Kathrin Lange defended the funding of the aid package to alleviate the consequences of the Ukraine war and energy crisis from the state reserves. The SPD politician stated in the RBB-Inforadio that reserves are there to be used when needed. "Overall, Brandenburg is economically stable." Lange said. "Saving until it's too late is nonsense," she added. The Landtag in Potsdam will pass a second supplementary budget in its afternoon session.
The reason: In June, the Constitutional Court of the state declared the regulation on Brandenburgan aid package of 2022 unconstitutional and demanded more explanations for the connection between the declared state of emergency and the aid measures. With the supplementary budget, the need for a new declaration of a state of emergency – which, in the view of Finance Minister Lange, is risky - and a better explanation of the measures will be avoided.
The Brandenburgan aid package of around 850 million Euro will no longer be financed through new debts – but from the state reserves. It is intended to alleviate the consequences of the Ukraine war and energy crisis and support families, municipalities, hospitals, and businesses.
According to the Finance Ministry's statements at the end of the year 2023, there were still approximately 1.6 billion Euro in reserves. The supplementary budget for this year had planned to withdraw 708 million Euro from this amount. If the aid package is now paid from this, only about 30 million Euro will remain.
The opposition Left faction expressed concern in the Landtag that future cuts in the social sector could be threatened. The AfD fraction intends to reject the supplementary budget in the vote in the afternoon and criticized an "emptying of the accounts".
Finance Minister Lange said in the morning in the Landtag that the land has never invested more in the country and its people than it does today. "The budget volume was approximately 13.7 billion Euro in 2019, with this supplementary budget, it will be 16.7 billion Euro in 2024."
- The Constitutional Court cited concerns about the connection between Brandenburg's state of emergency and the aid package in its ruling against the 2022 regulation.
- The SDP politician, Kathrin Lange, argued that using reserves during times of need is more prudent than saving until it's too late.
- The Ukrainewar and energy crisis have led to the need for a supplementary budget in Brandenburg, aiming to aid households, municipalities, hospitals, and businesses.
- The Household budget for 2024 is expected to increase significantly due to the Special session's approval of the supplementary budget, with the aid package being financed from the state reserves.
- The opposition Left faction voiced fears that future cuts in the social sector could be a consequence of spending from the state reserves on the aid package, while the AfD criticized the potential emptying of state reserves.
