Local governments - Göttingen expects a budget deficit of one million euros in 2024.
Located in Germany, Göttingen is anticipating a substantial budget deficit amounting to 50 million euros for 2024, as detailed by its administration on Monday. Such significant deficits are predicted to continue in the years ahead, contrasting the previous years' surpluses in 2022 and 2023.
This shift in trend is mainly attributed to dwindling tax revenues. "Things we once financed with extra tax money due to booming tax revenues and consequently managed to afford, are no longer possible this year," stated Christian Schmetz, the city's First Mayor. As a remedy, the city plans to incur debt. Fortunately, the current debt level remains considerably lower than the approved limit, which is set by the city council.
Mayor Petra Broistedt (SPD) pinpointed the need for cost-cutting measures, expressing: "We'll need to tighten our belts seriously." Despite the difficult situation, she emphasized that efforts would be made to save money. If feasible, she asserted that investments should still be made, such as in schools and the renovation of the German Theater, for which a large sum in the millions is earmarked, in collaboration with the federal government and the state.
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In response to the financial strains, other municipalities in Lower Saxony, such as Goettingen, are also reportedly facing budget shortfalls. Household expenses and essential infrastructure maintenance in municipalities across Lower Saxony might eventually exceed their budgeted finances, leading to a collective deficit. The state of Lower Saxony needs to closely monitor and address these financial challenges in its municipalities to prevent a widespread fiscal crisis.
