Home-based - Parliament passed a dual budget plan.
The Bavarian budget for the next two years has been approved by the state parliament, marking the end of three days of discussions. The passage of the budget was predictable due to the majority coalition of the CSU and Free Voters.
The total budget for the two years is estimated to be around 149 billion euros, with 73 billion euros allocated for 2024 and 76 billion euros for 2025. The investment rate is around 15% or 22.4 billion euros, which is higher than in other federal states.
Finance Minister Albert Füracker referred to the budget as a solid foundation for a bright future, highlighting that it serves both as a crisis management tool and a future strategy. The budget ensures financial stability for both years, while maintaining Bavaria’s fiscal discipline with no new debt. However, the budget will draw on the state's reserves to the tune of around five billion euros.
Füracker acknowledged that the projected tax revenue shortfall is alarming. In response, a "contingency plan" has been integrated into the budget. He remarked that they are now waiting to see how the year will pan out as per the latest tax projections, which indicate a 1.1 billion euro cut in expected tax revenues by 2025. The current forecast anticipates a revenue decline of around 600 million euros for 2024 and 500 million euros for 2025.
Opposition members were not happy with the budget, criticizing both its content and the process. Claudia Köhler (Greens) disapproved of the budget being only passed in June, a delay from previous years. She also criticized the budget for not being ambitious enough, urging more spending on education, energy, climate, and housing. Furthermore, she criticized the government's response to the flood disaster, insisting that their original investments in environmental protection and climate adaptation should have been much higher. "Five centuries of floods in just 20 years - that should have been taken into account already," she said.
The AfD demanded a more substantial flood relief package than the currently planned 100 million euros. AfD member Andreas Winhart argued that 300 million euros were necessary for the affected areas. On the other hand, Winhart denounced the "climate panic", contending that high water levels in the state have been recorded historically. However, Füracker maintained that the state was prepared to provide more than just 100 million euros in aid if required.
Volkmar Halbleib (SPD) labeled the budget as one of stagnation. He also expressed concern that the state's deficit will shrink considerably with the new budget.
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The CSU, being a part of the majority coalition in Bavaria's state parliament, played a significant role in the approval of the dual budget plan. The budget, with its estimated total of 149 billion euros, was influenced by Albert Füracker, the Finance Minister of Bavaria. The future of household finances in Bavaria seems secure with this budget, as it ensures fiscal discipline and financial stability without incurring new debt. The AfD, a political party in Bavaria, suggested a larger flood relief package than the current 100 million euros allocated in the budget.
