Tax estimate: Saxony wants to avoid burden for municipalities

Saxony's minority government of CDU and SPD wants to avoid additional burdens for local authorities despite falling tax revenues. The tax estimate presented by the Federal Minister of Finance shows how tense and uncertain the financial situation of public budgets is, explained CDU parliamentary group leader Christian Hartmann. The general economic conditions are still poor. "This is having a particularly negative impact on trade tax revenues and therefore directly on the municipalities."

CDU stands by its no to new debt

"We take the difficult situation of the municipalities seriously. We will take a close look at the specific effects in the municipal financial equalization system in the coming days and react responsibly in the interests of our municipalities. Further burdens on municipalities, cities and districts must be avoided. We also expect this from all other parliamentary groups in the state parliament," said Hartmann. Clear priorities must be set. The CDU stands for a budget without new debt.

SPD considers new loans indispensable

The coalition partner SPD, however, saw the tax estimate as proof that it would not be able to do without new loans in the current legislature. "The tax estimate gives us a clear mandate for the coming years: we must do everything we can to get the economy moving again. To do this, Saxony must invest massively in the future." Acute additional burdens on local authorities must be avoided. "We agree on this in the coalition. We will not leave our municipalities out in the rain."

According to the Federal Ministry of Finance, tax estimators predict that around 33.3 billion euros less will flow into the federal government's coffers by 2029 than was assumed in October 2024. The exact effects for Saxony are currently being calculated by the Saxon Ministry of Finance. A detailed assessment will only be possible at the beginning of next week,