The Court of Audit in Saxony insists on further steps to consolidate the state's finances and recommends avoiding new debt. The Free State should continue "on the path of Saxony's solid budgetary policy" and the budget should generally manage without loans, demanded Jens Michel, President of the Court of Audit, at the presentation of the annual report.
According to the law, the federal states can take out loans to a certain extent. The Basic Law grants them an annual credit limit of 0.35 percent of gross domestic product. According to Finance Minister Christian Piwarz (CDU), this would be around 700 million euros per year in the case of Saxony.
