The results of the May tax estimate are widening the hole in Dresden's budget. According to the administration, a deficit of around 310 million euros is expected by 2031. This will exacerbate the "already dramatic budget situation of the state capital". The experts lowered the trade tax revenue forecast for this year compared to 2025 from plus 3.5 percent (October estimate) to minus 3.3 percent. For Dresden, this means a drop in revenue expectations for this tax of around 33 million euros.
OB calls for reform of financial relations
For Hilbert, these figures are further proof that "the financial crisis of the municipalities can only be solved through fundamental structural reforms of the financial relations between the state levels": "In the cities and municipalities, we not only pay the bills for the orders from the federal and state governments, but then only get the crumbs from the tax cake."
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