Forecast: local authorities must expect falling revenues

Around one billion euros less in municipal coffers by 2030

In concrete terms, the Dresden Ministry of Finance expects 20.2 billion euros in tax revenue in the current year - 27 million euros less than previously expected. Saxony's municipalities will be hit much harder by the forecast, primarily due to a possible drop in trade tax revenue, it continues. According to the Ministry of Finance, revenue in this area will fall by around 200 million euros this year alone. In the coming years, the shortfall will increase.

By 2030, the Saxon Association of Towns and Municipalities (Sächsischer Städte- und Gemeindetag, SSG) even expects a shortfall in revenue of 1.1 billion euros compared to previous forecasts. This will "further exacerbate the catastrophic budget situation of the municipalities", it continues. "The worsening tax estimate will be met with a municipal budget deficit that will already amount to over one billion euros in Saxony by 2025. Despite consolidation measures in the municipalities, expenditure continues to rise faster than income," said SSG President Bert Wendsche. The state must do significantly more, the president demands, in view of rising revenue forecasts at state level from next year.