The state capital of Dresden is also heading for a budget deficit in the millions this year. According to an interim financial report, an uncovered deficit of almost 65 million euros is expected for 2025. According to Mayor Dirk Hilbert (FDP), this is due to rising expenditure in the areas of social welfare and personnel as well as declining income from taxes and key allocations.
According to the report, income will decrease by around 32.7 million euros, while expenditure will increase by 66.4 million euros. All in all, the city is expecting a minus of around 100 million euros in current cash inflows and outflows from administrative activities.
Hilbert spoke of an "acute need for action". An additional deficit of around 144 million euros is already looming for the coming year. A budget structure concept must therefore be drawn up and implemented. "We will have to hold an honest but tough consolidation debate, the key points of which will be presented to the city council in the remaining weeks," said the mayor.
The management restrictions of up to ten percent in the departmental budgets, which were already decided in the summer, will continue to apply in order to prevent the deficit from growing further.
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