- Hanover plans to invest heavily - debt rises
Hannover, the capital of Lower Saxony, plans to incur new debts and significant investments in the years 2025 and 2026. The new debt is expected to be 101 million euros in the coming year and 82 million euros in 2026, according to the city's new double budget presented to the city council.
The total debt, which was around 1.8 billion euros last year, is projected to reach nearly 2 billion euros in 2025 and around 2.05 billion euros in 2026. The double budget is expected to be approved by the end of the year.
Hannover's treasurer, Axel von der Ohe, emphasized that the implemented budget consolidation concepts are bearing fruit: "For the first time in six years, we are presenting a balanced budget in terms of expenses and revenues." Mayor Belit Onay stated: "The crises of recent years are still having an impact, as is the chronic underfunding of municipal budgets. Nevertheless, we continue to invest at a very high level."
The investment volume for both years is expected to total around 550 million euros, with approximately 250 million euros allocated to school and kindergarten infrastructure, about 70 million euros to streets and cycle paths.
On the revenue side, the city highlighted a strong development in trade tax: Trade tax revenues of 851 and 891 million euros are expected for 2025 and 2026, respectively. In the current year, more than 800 million euros are expected instead of the previously expected 720 million euros. The double budget draft amounts to 3.19 billion euros for 2025 and 3.3 billion euros for 2026.
The city's new double budget, which includes 101 million euros of debt in 2025 and 82 million euros in 2026, will contribute to the projected increase of Hannover's debt to nearly 2 billion euros in 2025. Despite this significant debt, Mayor Belit Onay insists on continuing high-level investments, as evidenced by the planned allocation of 250 million euros to school and kindergarten infrastructure.
