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Proposed enhanced budget plan - Authorities intend to boost expenditures

The proposed multibillion-euro financial plan for the years 2025 and 2026 has been tabled: Expenditures outpace income. Borrowing will solely occur in 2026.

The proposed budget plan for the years 2025 and 2026 involves billions of dollars.
The proposed budget plan for the years 2025 and 2026 involves billions of dollars.

- Proposed enhanced budget plan - Authorities intend to boost expenditures

The Rhineland-Palatinate administration has given the green light to its proposed two-tier budget for the upcoming two years. As per this proposal, an estimated 25.16 billion euros in expenses are earmarked for 2025, marking a rise of over ten percent compared to the current year's spending, as revealed by the state administration led by Minister President Alexander Schweitzer (SPD) in Mainz. For 2026, the expenditures are planned to climb further to 25.45 billion euros.

In contrast, projected revenues for 2025 stand at 24.22 billion euros, with 25.08 billion euros anticipated for 2026. No fresh loans will be sought in the upcoming year, with reserves set to be utilized instead, while a net loan of 363.0 million euros is envisioned for 2026 in the proposed budget.

Unsurprisingly, the largest individual budget allocation goes to the Ministry of Education. Reduced allocations have been proposed for the following years for the Ministries of Science, Health, Interior, Environment, and Economics.

Following the cabinet's decision, the proposed dual budget will be forwarded to the state parliament, where they will scrutinize the figures. Following detailed discussions in the Budget and Finance Committee, the final say will rest with the parliament, acting as the budget lawmaker.

The Rhineland-Palatinate administration's proposed two-tier budget for the next two years includes a detailed budgetary procedure to allocate funds. This budgetary procedure will be closely scrutinized by the state parliament before it becomes the binding budget law.

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