The taxpayers' association sees Saxony in a deep financial crisis. "Despite a record budget, there is a gaping hole of around 1.1 billion euros, reserves have been used up and new loans are tearing additional gaps," the association announced. One year after the state elections, Saxony is financially on the brink.
The taxpayers' association criticized the reaction of the minority government of the CDU and SPD as "patchwork" and accused it of lacking the political will to shape the future. It is incapable of stopping "excessive staff bloating" in the civil service, is not making full use of investment funds and is passing the budget entirely at the expense of reserves. The permission for "highly indebted municipalities" to take out further loans is particularly criticized. According to the association, sustainable structural reforms are necessary.
The double budget for 2025/2026 provides for expenditure totaling around 50.2 billion euros. In order to compensate for a funding gap of four billion euros, the government has also made cuts. Among other things, the share of investments in the overall budget is to fall from 16.8 percent in 2024 to 13.3 and 12.6 percent in 2025 and 2026 respectively. Following a budget meeting in mid-August, the government announced a reform of the administration with the aim of reducing jobs in the civil service.
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