Money matters - The cabinet endorses crucial numbers for the 2025 budget proposal.
The Schleswig-Holstein state government aims to balance their budget for the year 2025 with significant cuts and reductions in the tens of millions. The black-green cabinet came to a decision on the financial plan's key figures, presented by Finance Minister Monika Heinold of the Greens Party, which includes the budget for 2025 and financial planning until 2033. Heinold stated, "We'll spend the next few weeks to tighten the budget even further." She added, "This path won't be easy, but we're determined to make it work."
In 2025, Black-Green anticipates a revenue of around 16.2 billion Euros, in comparison to expenditures amounting to approximately 16.4 billion Euros, resulting in a deficit of 224 million Euros. These will be closed through loans (181.5 million Euros) and reserves (42.5 million Euros). A global reduction of 570.6 million Euros has been planned initially, and they plan to create savings plans of over 200 million Euros before the budget draft presentation in September.
It's expected to know in the fall whether the state will require yet another emergency loan. For the current budget, the state parliament has authorized a loan of over 1.5 billion Euros. The cabinet will determine the amount to be withdrawn from the reserve fund in September, a decision that has attracted criticism.
Over a third of the 2025 budget is earmarked for personnel costs, which amount to nearly 6 billion Euros, making up 35.5% of the budget volume. Expenses amounting to approximately 590 million Euros are for interest, while 1.56 billion Euros are allocated for investments. The investment ratio in the key figures sits at 9.5%.
Heinold plans on putting aside 30 million Euros to repay existing emergency loans. The state parliament will discuss the government's draft bill for the first time in October.
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- Monika Heinold, the Finance Minister of Schleswig-Holstein's black-green cabinet, mentioned that they plan to further tighten the budget for 2025, which currently has a deficit of 224 million Euros, with the aim of balancing the budget.
- To manage the budget deficit in 2025, the state government plans to utilize loans in the million-range and reserves, totaling 181.5 million Euros and 42.5 million Euros respectively.
- Amidst budget cuts and savings plans, the state government anticipates the need for an emergency loan in the fall of 2025, and the amount to be withdrawn from the reserve fund will be determined by the cabinet in September.
- Monika Heinold intends to allocate 30 million Euros to repay existing emergency loans, as she presents the government's draft bill for the 2025 budget to the state parliament in October.
