finances - Significant push
The Saarland Finance Minister, Jakob von Weizsacker (SPD), warned against excessive expectations due to the additional revenues from the Intergovernmental Financial Equalization. Due to the population in Saarland growing by 1.8 percent, contrary to the national trend of a 16 percent decrease, the state now receives an additional 200 million Euro annually. However, these revenues face counterbalancing reductions in medium-term financial planning: approximately 180 million Euro for 2026 and nearly 250 million Euro for 2027.
These additional revenues, which stem from the census, could significantly help ensure that essential future expenses for the country, such as investments in broadband infrastructure, hospitals, and transformation, do not get cut back excessively. "Our modernization course receives an important boost, but it does not provide room for major new leaps," said von Weizsacker. According to the census results, Saarland will receive partial repayments for the years 2022 and 2023. The exact size of this "catch-up payment" and when it will occur cannot be determined yet. Based on current calculations, it will be "a little smaller" than the 200 million Euro.
Given challenges such as the supplementary budget due to the Pfingsthochwasser or investments in broadband, hospitals, and transformation, it is crucial to receive these additional payments. Of these funds, 30 million Euro will go to the communal level, and 170 million Euro to the state.
Short-term funds from the Transformation Fund
According to the Minister's statements, 9 million Euro have flowed out of the 3 billion Transformation Fund of the state so far, primarily for planning services. The outflow of funds in this year, however, will be more restrained than planned, mainly due to delays in the contract awarding process to suppliers for the green steel. Nevertheless, "substantially more than 300 million Euro" is still possible.
In his view, the essential aspect is that the state is ready to finance its transformation when needed: "Whenever the Saar economy requires financing for its transformation, funds will be available - and that very short-term," emphasized he. "We are not the limiting factor; we are enablers."
Finance and Science Ministry of Saarland
- The SDP in Saarland, led by Finance Minister Jakob von Weizsacker, sees these additional revenues from the Intergovernmental Financial Equalization as a valuable resource for securing the future finances of Germany, specifically for investments in areas like broadband infrastructure, hospitals, and transformation in Saarland.
- The German government and Saarland's Finance Ministry, under von Weizsacker's leadership, are anticipating partial repayments from the Intergovernmental Financial Equalization in 2022 and 2023, potentially reducing the 200 million Euro annual revenues by an undetermined amount.
- In the medium term, the Saarland government intends to allocate 30 million Euro from the additional revenues to the communal level and 170 million Euro to the state budget, ensuring financial stability and facilitating necessary investments.
- The SPD in Saarland, along with the Finance and Science Ministry, is committed to ensuring that adequate finances are available for the transformation of the Saarland economy, enabling the necessary investments in green steel and promoting sustainable growth.
