- Koch affirms: Progress toward Budget 2025 is on point
The head of the CDU faction in Schleswig-Holstein thinks that the current black-green state administration is moving in the right direction with their 2025 budget plan, despite major cost-reduction measures. "We're dealing with more than just tough times, as it's impossible to fill a one billion euro hole in the state budget overnight," Tobias Koch explained to the German Press Agency.
The state government plans to unveil a budget draft for the upcoming year in September, featuring savings of 200 million euros. This gradual reduction in the budget deficit is Koch's preferred approach. "I don't see any other option," he stated. Eliminating a billion euros all at once would be too much for the state's financial situation.
However, Koch was yet to provide details on the exact savings plans. He did point out, though, "If you examine our state, you'll notice how smoothly the coalition manages to make such decisions and maintain secrecy. It's a stark contrast to the federal government."
Economic Slump
According to Koch, the lack of income isn't due to low tax rates but rather the absence of economic expansion. The dwindling economic performance is evident in the state's tax revenue. If revenue can't keep up with increasing expenses, there's an issue.
To tackle this issue and encourage growth, Schleswig-Holstein is focusing on attracting climate-neutral businesses. "This is a fantastic opportunity for Schleswig-Holstein and hopefully will lead to economic growth and an increase in revenue," Koch said. "In this way, we have a chance to pull ourselves out of the rut by our own bootstraps."
The CDU faction's budgetary strategy for Schleswig-Holstein involves gradual savings to reduce the deficit, as Koch believes eliminating a billion euros all at once would be financially unfeasible. The state government's focus on attracting climate-neutral businesses is a budgetary move aimed at fostering economic growth and improving revenue.
