Cost-cutting measures - Magdeburg raises prices due to record deficit
Due to a record budget deficit, the state capital of Magdeburg has decided on far-reaching cost-cutting measures and price increases. Among other things, the city council decided on Monday to raise parking fees, introduce a bed tax for tourists and increase the rate of property tax. Rising costs for personnel and social spending were the main reasons for the city's high expenditure, explained Thorsten Kroll, the councilor for finance and assets. "There has never been such an increase in the recent past." For the first time, the city's expenditure has exceeded one billion euros.
Among other things, parking fees have doubled to one euro per hour. With the increase in property tax, the city is expecting charges of 10 to 20 euros per year for tenants and around 50 euros for homeowners. The dog tax and entrance fees for swimming pools and museums are also to be increased. The measures are intended to reduce the budget deficit of more than 22 million euros by 7.3 million euros.
Resolutions of Madgeburg City Council
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These cost-cutting measures in Magdeburg, being the state capital of Saxony-Anhalt, also affect local municipalities and households. The economy measure includes a significant price increase for services such as parking, property tax, dog tax, and museum entrance fees. Due to these measures, the city aims to reduce its budget deficit of over 22 million euros by approximately 7.3 million euros. The record deficit and rising expenses for personnel and social spending have led to this drastic action.
Source: www.stern.de
