Hamburg could not compensate for loss of federal funding
Due to the federal budget crisis, Hamburg may not be able to compensate for the loss of funding from its own budget. It is not yet possible to make a final assessment of the loss of funding from the Climate and Transformation Fund (KTF) for Hamburg, as the specific effects on individual measures have not yet been announced by the responsible federal ministries in many cases, said Finance Senator Andreas Dressel (SPD) on Wednesday on the sidelines of the parliamentary session. However: "In view of the dramatic budget situation, it will not be possible to compensate for the loss of federal funds from the Hamburg budget."
Last week, the Federal Constitutional Court declared the reallocation of 60 billion euros in the 2021 federal budget null and void. The money had been approved as a coronavirus loan, but was subsequently to be used for climate protection and modernizing the economy. At the same time, the judges ruled that the state may not reserve emergency loans for later years. This means that further billions of euros for future projects are at risk.
Hamburg is not directly affected by the ruling, said Dressel. "Knowing the decision of the Federal Constitutional Court, there is no reason to doubt the constitutionality of the budget of the Free and Hanseatic City of Hamburg." Unlike the federal government, the Hanseatic city had not set up a similar special fund and kept credit authorizations in reserve.
Hamburg had managed and completed the emergency situation with the 2022 financial year, said Dressel. Corresponding credit authorizations had also only been used to less than 50 percent. "Since the 2023 budget year, no emergency-related credit or spending authorizations have been available either in the core budget or in special funds." Existing remaining authorizations were deleted at the end of 2022.
Despite Hamburg not being directly impacted by the Federal Constitutional Court's ruling, the Senate may need to be more cautious with its household finances, considering the potential loss of funds for future projects due to the court's decision regarding the federal budget. In the event of a reduction in federal funding, the Senate will likely need to reconsider its financial plans for climate protection and economic modernization measures within the city's budget.
Source: www.dpa.com
