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Relief and criticism after the 2024 budget decision

Representatives of business, government and organizations in Thuringia have reacted with relief to the fact that Thuringia has received an approved budget for the coming year. The budget with a new record volume of more than 13.5 billion euros creates planning security and ensures a minimum of...

Members of parliament sit in the plenary chamber during a session of the Thuringian state....aussiedlerbote.de
Members of parliament sit in the plenary chamber during a session of the Thuringian state parliament. Photo.aussiedlerbote.de

Planning security - Relief and criticism after the 2024 budget decision

Representatives of business, government and organizations in Thuringia have reacted with relief to the fact that Thuringia has received an approved budget for the coming year. The budget with a new record volume of more than 13.5 billion euros creates planning security and ensures a minimum of political stability in Thuringia, explained Cornelia Haase-Lerch, Managing Director of the Erfurt Chamber of Industry and Commerce, on Thursday.

This is particularly important for business investment projects. The business association and several ministers also praised the fact that there is now financial planning security for local authorities, businesses, organizations, initiatives and associations. Criticism of the high budget volume came from the business community, but also from the Thuringian Court of Auditors.

Despite the cuts made compared to the government draft, expenditure will increase compared to 2023 - this year, Thuringia's budget volume is just under 13.1 billion euros. The state parliament approved the compromise budget between the red-red-green minority coalition and the opposition CDU late on Wednesday evening.

Court of Audit President Kirsten Butzke welcomed the agreement after the long tug-of-war between the governing coalition and the opposition faction. The background to this is that the red-red-green coalition is dependent on compromises due to a lack of its own majority in the state parliament. However, Butzke also recalled the Court of Audit's concern that there could be an imminent imbalance in state finances in the future.

The agreed budget had both positive and negative aspects. On the positive side, the savings achieved during the negotiations meant that around 227 million euros less had to be taken from the state's reserves in order to finance the budget. On the negative side, the budget still contains a financing gap of 156 million euros (global underspending), which will have to be closed during the course of the year. This means that the state parliament has not fully exercised its budgetary authority.

The Court of Audit is also critical of the planned extension of the repayment of coronavirus loans to 15 years. Structural problems with the budget would continue to exist.

Read also:

  1. The Erfurt IHK (Chamber of Industry and Commerce) appreciates the budget resolution, as it provides 'planning security' for local businesses, ensuring they can make informed investment decisions.
  2. The State parliament of Thuringia, despite facing criticism for the high budget volume, managed to approve a compromise budget, ensuring financial planning security for households and various organizations in Thuringia.
  3. The Thuringian Court of Auditors, while welcoming the approved budget, expressed concern over the potential imbalance in state finances in the future due to the existing structural problems in the budget, including the planned extension of coronavirus loan repayment to 15 years.

Source: www.stern.de

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