Less leeway: NRW state parliament debates 2024 budget
The North Rhine-Westphalian state parliament will debate the black-green state government's draft budget for 2024 on Wednesday (10.00 a.m.). The fundamental debate is also likely to be influenced by the federal budget crisis following the Federal Constitutional Court's budget ruling.
Around two weeks ago, the Karlsruhe court declared a reallocation of 60 billion euros in the 2021 federal budget to be unconstitutional and null and void. The federal government is therefore not allowed to use funds intended to combat the coronavirus crisis for climate protection. Several planned transformation projects in NRW are now also hanging in the balance financially due to the ruling.
However, according to an initial assessment by NRW Finance Minister Marcus Optendrenk (CDU), the ruling will not have a direct impact on the NRW state government's budgetary practice. According to Optendrenk, the credit-financed special fund of five billion euros passed last year by the state parliament with a black-green government majority to deal with the consequences of the Russian war of aggression in Ukraine is also unlikely to be affected. However, the NRW Constitutional Court will still have to deal with this. The SPD and FDP opposition had filed a lawsuit against the establishment of the special fund.
The 2024 draft budget for NRW is characterized by tighter financial leeway for the black-green state government. This is due to the sluggish economy, rising interest rates and lower than planned tax revenues. On the other hand, there is a need for additional funding in several areas, from daycare centers due to increased personnel costs to the accommodation of refugees.
With the country's total expenditure planned for 2024 at a record 102 billion euros, more than 38 billion euros are earmarked for education alone. The country's interest expenditure will increase by 1 billion to 3.8 billion euros in the coming year compared to 2023. Around 3 billion euros have been earmarked for refugees. In addition, a "buffer" for tariff increases must be included in the state budget. The final third reading of the budget law is scheduled for mid-December.
The opposition parties in the NRW Parliament, including the SPD and FDP, may express concerns about the state government's household finances, considering the impact of the federal budget crisis on their own financial plans. The establishment of the five-billion-euro special fund for dealing with the consequences of the Russian war in Ukraine might also become a topic of discussion during the Parliament's debate on the state budget.
Source: www.dpa.com
