Praise and criticism for Saxony's 2025/2026 double budget

The double budget for 2025/2026 passed by the Saxon state parliament has met with a mixed response in the state. This is evidenced by numerous reactions in which associations, institutes and clubs expressed praise and criticism after the vote late on Thursday evening. The fact that the agreement creates clarity and prevents further uncertainty was unanimously welcomed.

The budget has a total volume of 50.2 billion euros and was passed following an agreement between the minority coalition of the CDU and SPD with the Greens and the Left Party.

Criticism of the decline in investment

"However, the cuts in future-relevant expenditure are jeopardizing the urgently needed growth prospects," explained the Saxon chambers of industry and commerce in a joint statement. The decline in investment could not be fully offset by additional federal funding from the special fund. The focus must therefore clearly be on investments with strategic and economic added value.

With the new double budget, the investment ratio will fall from 16.8 percent in 2024 to 13.3 and 12.6 percent in 2025 and 2026 respectively.

"From the engineers' point of view, the agreement on the budget was not a success. The balancing act between consolidation and the desire to shape the future has failed," emphasized Ralf Donner, Vice President of the Chamber of Engineers. Instead of strengthening sustainable structures, the government is taking the long view - with major consequences for infrastructure, the construction industry and Saxony as a location for innovation. There would be 30 percent less funding available for infrastructure.

Complaints about funding cuts for cycle path construction

The General German Cyclists' Club of Saxony was disillusioned. "Instead of finally putting the many completed cycle path plans on the road, the state parliament drastically cut funding for cycle path construction. For example, the funds for the construction of cycle paths on state roads were cut from 5 to 1.1 million euros, although there is already planning permission for around 35 kilometers of cycle paths and construction could begin," it said.

The Ifo Institute was pleased to have retained its branch in Dresden. As a result, research and policy advice can be continued with the usual quality and staffing levels. "In the coming months, we will continue our talks with the state government and present a concept for the long-term development of the branch from 2027," emphasized Ifo President Clemens Fuest.

The Saxony State Sports Association assessed the double budget as fundamentally positive, but at the same time warned of the need for further action, especially in the area of sports facility investments. "With the special fund, the federal government has created a framework that will give the states scope for investment in the future. We hope that Saxony will also use this opportunity in the interests of sport," it said.