Municipalities - Fiscal equalization in Bavaria rises to 11.4 billion euros
Despite bleak prospects, declining revenues and rising costs, the municipal financial equalization scheme will rise to a new record level next year. The state government and leading associations agreed on a volume of 11.4 billion euros. "We have negotiated very successfully," said Finance Minister Albert Füracker (CSU) on Thursday in Munich. Despite complicated times and major challenges such as inflation and personnel costs, it was not easy to maintain a stable financial architecture.
"We have not only cut red tape, but have also been able to improve the municipalities ' income and scope for action," said Füracker. The municipal financial equalization has reached a new high, even if not all wishes could be fulfilled. Bavaria's municipalities can therefore continue to plan reliably.
With the financial equalization, the Free State helps the municipalities, counties and districts so that they can fulfil their tasks in the interests of the citizens. The volume of financial equalization has risen steadily and sharply in recent years: While it was still around 8.9 billion euros in 2017, it already amounted to 11.16 billion euros in 2023.
In recent months, representatives of the municipal umbrella organizations have repeatedly insisted on increasing financial equalization and otherwise warned of severe cuts to municipal services of general interest. They justified this with high inflation, personnel costs and additional challenges, such as climate protection.
In addition to the heads of the Association of Cities, the Association of Counties, the Association of Municipalities and the District Assembly as well as Füracker, Interior Minister Joachim Herrmann (CSU), Economics Minister Hubert Aiwanger (Freie Wähler) and the Chairman of the Budget Committee in the state parliament, Josef Zellmeier (CSU), also took part in the talks.
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- Despite the rising inflation and increasing personnel costs, which are major challenges for municipalities, the financial equalization scheme between the state government and municipalities in Bavaria is set to increase to 11.4 billion euros next year.
- Finance Minister Albert Füracker (CSU) from Bavaria praised the successful negotiations, stating that they not only reduced red tape but also improved the financial situation and scope of action for the municipalities.
- The CSU's Interior Minister Joachim Herrmann, Economics Minister Hubert Aiwanger (Freie Wähler), and the Chairman of the Budget Committee in the state parliament, Josef Zellmeier (CSU), were also present during the negotiations that resulted in the increased financial equalization for Bavarian municipalities.
- Albert Füracker mentioned that while not all wishes could be fulfilled, the municipal financial equalization has reached a new high, allowing Bavaria's municipalities to continue planning reliably under difficult fiscal circumstances.
- The Association of Cities, the Association of Counties, the Association of Municipalities, and the District Assembly repeatedly stressed the need for an increase in financial equalization due to high inflation, personnel costs, and additional challenges like climate protection in recent months.
Source: www.stern.de
