The Free State of Saxony will have to make do with significantly less tax revenue than originally expected. According to the May tax estimate, the Saxon state budget can expect tax revenues of 19.1 billion euros this year, the Ministry of Finance announced in Dresden on Friday. This means that the expected revenue of 258 million euros is far below the 2024 budget plan.
For the period of the upcoming double budget, the Free State can expect tax revenue of 19.6 billion euros next year and 20.4 billion euros in 2026. Compared to the estimate in October 2023 and the medium-term financial planning, this means a significant reduction of 715 million euros in the previous revenue expectations for both years.
The economic outlook is currently not good, said Saxony's Finance Minister Hartmut Vorjohann (CDU). "The consequences of the war in Ukraine and the economic policy course of the coalition in the federal government are having a considerable negative impact on the mood in the German economy." This will also result in noticeably lower tax revenues for the Free State of Bavaria. "We will have to tighten our belts considerably in the state budget."
