Home-based - Senator Evers on Finance: Berlin can operate with fewer funds.
Berlin's financial leader, Stefan Evers, has put the city on a tight spending restrictions that will be continued in the upcoming years. He spoke about it in a meeting on Thursday in the House of Representatives and expressed his concerns over the ballooning of state expenses since 2019. According to the CDU politician, the city frequently addressed its problems with nonexistent cash. Evers stated that it's now time for Berlin to draw the line and stop this practice since the budget has reached its limit.
He instructed that state spending must be decreased gradually to a normal and manageable level. Berlin can function smoothly even with less funds, and it could work even more efficiently. To make these changes happen, the coalition will review every expense in detail, inspecting everything to make it work.
The aim is to focus on essential tasks and investments that are critical for a functioning city, social harmony, and the rule of law. It's essential to discover what Berlin can still afford and what it can't. Additionally, there must be enough finance for necessary investments in the city's future. This will be a long, challenging journey with intense negotiations.
The projected double budget for 2024 is 39.3 billion euros, while in 2025, it's 40.5 billion euros. To reduce the budget that grew significantly during the Corona pandemic, 1.75 billion euros will be removed from the present-year budget - leaders agreed on a long list of cutbacks.
For 2025, the general reduction, or the total predicted savings in the budget, is worth two billion euros. It's possible that further savings will be mandatory if tax income declines. How these adjustments will be implemented is yet undecided.
Evers projected that a financial need of 5 billion euros would be needed in 2026 if there are no adjustments to the budget structure. This results in permanent cuts in certain expenditures.
