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Saxony plans to spend around 25 billion euros per year

Roßwein 11. February 2025 13:04 Uhr 5 Min
Saxony plans to spend around 25 billion euros per year
The cabinet meets for a two-day budget retreat. / Photo: Jan Woitas/dpa
From: DieSachsen News
"Not all flowering dreams will ripen": This sentence was heard several times after the budget meeting of the Saxon government. The Free State is facing financially challenging times.

Saxony's government plans to spend around 25 billion euros this year and next. This is according to the plans for the cabinet draft for the new double budget. This means that expenditure will remain at the previous level. The aim for the future is to reduce costs and increase revenue, said Minister President Michael Kretschmer (SPD) after the cabinet meeting in Roßwein.

Kretschmer announces cuts

"The budget volume is still very, very adequate. We will still be able to do many things, but it will be a little less everywhere," emphasized the head of government. It is about setting priorities. One of these is the municipalities. They are to be supported with an additional 600 million euros in 2025 and 2026.

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Prime Minister hopes for impetus after federal elections

Kretschmer made it clear that the Free State is heavily dependent on economic development in Germany. Germany is the country with the lowest growth of all industrialized nations. "Germany is now the sick man in Europe again." One could only hope that there would be a common spirit after the Bundestag elections and that the country would regain more economic strength.

Finance Minister speaks of a "budget of reason"

Finance Minister Christian Piwarz (CDU) spoke of a "budget of reason". The timetable is tight and the economic conditions are difficult. "But we have a clear goal: a stable transitional budget that gives us planning security even in economically challenging times and at the same time leaves room for creativity," explained the minister. In order to enable the individual departments to carry out priority projects despite the tense situation, targeted funds are being made available to ease the pressure.

Köpping: Not all dreams can come true

According to Social Affairs Minister Petra Köpping (SPD), not all dreams can come true with the double budget, but it is still an opportunity. Society has changed over the past 20 years. The task now is to respond to these changed needs and to define priorities in such a way that society does not suffer, but rather benefits from them. Offers for young people should be a priority.

Government wants to completely dissolve equalization reserve

In order to close the current funding gap of 2.3 billion euros this year and around two billion euros in 2026, savings are planned in personnel and material expenses. In addition to teachers, employees in research and teaching are also to be exempt from cuts.

The budget equalization reserve of currently around 1.2 billion euros is to be completely dissolved and the payment into the generation fund reduced by 270 million euros per year. The fund is intended to cushion the state's future pension burdens. A modified repayment of loans from the coronavirus pandemic is also planned.

Looking ahead to future budgets

"These are painful steps, but necessary in the current situation," emphasized Piwarz. The aim is to hold a serious structural discussion and clearly define priorities. "Because one thing is certain: with this transitional budget, we are already heralding the discussions about the next double budget for 2027/2028 and the following years. Today's decisions can be tomorrow's burdens." It is also important to protect future generations from this.

Coalition relies on opposition votes for budget

According to the timetable, the government draft will be finally approved by the cabinet on March 18 and passed on to the state parliament on March 24. It should then be passed by parliament in the summer.

As the CDU and SPD with their minority government are dependent on ten votes from the opposition, negotiations are still pending until then.

Copyright 2025, dpa (www.dpa.de). All rights reserved

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Projekt Saxony Today : Mehrsprachigkeit von regionalen Nachrichten für in Sachsen lebende Menschen ohne deutsche Muttersprache. Projekt wird gefördert durch die Sächsische Landesanstalt für privaten Rundfunk und neue Medien. Diese Maßnahme wird mitfinanziert durch Steuermittel auf Grundlage des vom Sächsischen Landtag beschlossenen Haushaltes.
Projekt Saxony Today : Mehrsprachigkeit von regionalen Nachrichten für in Sachsen lebende Menschen ohne deutsche Muttersprache. Projekt wird gefördert durch die Sächsische Landesanstalt für privaten Rundfunk und neue Medien. Diese Maßnahme wird mitfinanziert durch Steuermittel auf Grundlage des vom Sächsischen Landtag beschlossenen Haushaltes.