Ministry: Budget ruling has no immediate consequences
According to the Hessian Ministry of Finance, the budget ruling of the Federal Constitutional Court has no direct consequences for the state. On the basis of an initial cursory review, the ruling of the Federal Constitutional Court does not result in any changes to the existing legal situation in Hesse, a spokesperson said in response to an inquiry on Thursday.
On Wednesday, the Federal Constitutional 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 money intended to combat the coronavirus crisis for climate protection. This could have a major impact on the so-called Climate and Transformation Fund, from which the federal government wanted to pay for numerous funding programs - including for the replacement of old oil and gas heating systems.
Requirements from the ruling have already applied to Hesse since a decision by the Hessian State Court of Justice in October 2021 on the state's special coronavirus fund, explained the Ministry of Finance. The 2023/2024 double budget for Hesse does not make use of emergency credit authorizations and there are no special funds with their own credit authorization.
In view of the tense financial situation of the federal government and the need for consolidation at federal level triggered by the ruling, however, it is to be feared that the federal government will pass on part of the €60 billion requirement to the federal states by cutting co-financing projects such as agricultural funding. "In this respect, the ruling could at least indirectly affect the financial situation of the state of Hesse," predicted the ministry.
The Parliament will need to consider the impact of the Federal Constitutional Court's judgment on the national budget, given the potential financial implications for the federal government. Despite the ruling, the Hessian Parliament's household budget for the 2023/2024 financial year does not involve any special funds with separate credit authorizations.
Source: www.dpa.com
