Budget: BSW Calls for More Funding for Local Governments and Infrastructure

In the debate over the 2027/2028 two-year budget, the BSW is calling for an additional two billion euros for municipalities and infrastructure. The additional funds are not to come from loans, but from two financing contributions, according to a statement from the parliamentary group. 

Cutting Spending on the Generations Fund

According to the BSW’s proposals, less money should be allocated to the Generations Fund for future civil servant pensions over the next two years; instead, the funds should be used for schools, bridges, and public services. In addition, the BSW is calling for the Saxon Development Bank to transfer all of its profits to the state budget instead of building up further voluntary reserves.

Through structural reform, the parliamentary group aims to ensure that funds reach local communities directly, without detours. Instead of subsidy programs that require applications, documentation, and waiting periods, municipalities should receive a larger share directly.

Draft budget plans for more money than ever, despite cost-cutting measures

The government’s draft budget includes total expenditures of approximately 53.5 billion euros. This marks the highest level of spending in Saxony’s history, yet the budget is still accompanied by cuts and reductions. The cabinet intends to prioritize investments, education, and research, as well as local governments.

Since the CDU-SPD coalition is ten votes short of a majority in parliament, it relies on opposition parties to pass the budget.

BSW Links Approval to Reforms

According to a statement, the BSW parliamentary group is linking its approval of the budget to a significant strengthening of local governments and fundamental structural reforms. “We have made concrete proposals to the coalition on how to mobilize more than 2 billion euros for infrastructure and local governments,” Ronny Kupke said, according to the statement.

However, the CDU and SPD were unwilling to negotiate on fundamental reforms. “Those who refuse to make real changes in the interest of citizens cannot expect our approval,” Kupke added.