Saxon municipalities are up to their necks in water due to gaps in their financial resources. Calls for a reform of the municipal financial equalization system are therefore growing louder. The Budget and Finance Committee of the Saxon State Parliament has now heard experts on the draft of the Financial Equalization Act (FAG). The Greens called on the government to react appropriately.
"It became clear once again: the need for reform in the municipal financial equalization system identified by the experts is great - and yet the state government is still refusing to make any real progress," said Green parliamentary group leader Franziska Schubert. The municipal umbrella organizations had refused to approve the current draft: "That is clear."
Schubert recalled that the municipal core and extra budgets had a deficit of 680 million euros in the 4th quarter of 2024. She referred to rising social spending, among other things. "The situation in the rural districts is particularly dramatic. Even when voluntary services are completely dispensed with - as is currently the case in the district of Görlitz - it is not possible to balance the budgets."
