Savings policy - Pressure on the Senate to save even more
The pressure on the black-red Senate to save significantly in the budget continues to grow. One reason for this is the most recent population census, Census 2022. According to this census, Berlin has significantly fewer inhabitants than anticipated, resulting in the state receiving less money from the federal tax distribution system.
According to a spokesperson from the Finance Administration, this means a deficit of 450 million Euros in 2025, with further reductions in the following years, reaching 550 million Euros by 2028. The "Berliner Morgenpost" was the first to report on this.
Substantially less tax revenue
According to the data from the tax assessment of mid-May, Berlin also receives 174 million Euros less than anticipated in the current year and 188 million Euros less in the year 2025. Realistically, it is assumed that not only the previously known approximately two billion Euros due to the budgeted flat-rate reductions in the budget for 2025 will have to be saved, but three billion.
With a volume of 40 billion Euros, this would amount to 7.5%. Black-Red is therefore faced with the task of finding budget items that can be cut significantly in 2025. Individual major projects hardly come into question. For 2025, only 300 million Euros are planned for the controversial 29-Euro ticket, a fraction of the total savings required.
- Due to the budget shortfall, the Senate and the House of Representatives in Berlin must reconsider their savings policy, as the Household budget now requires a reduction of at least 3 billion Euros by 2025.
- The Senate's financial challenges have also resulted in concern in Germany, with political analysts in the House of Representatives in Berlin discussing the potential impact on Berlin's financial position in the country's overall budget.
- The deficit in Berlin's finances might also affect the savings policy of other German households, as any reduction in government spending could potentially impact various funding programs or economic stimulus measures in Berlin and Germany at large.
