In light of expected increases in government revenue, Saxony’s Minister President Michael Kretschmer (CDU) is insisting on relief for municipalities, citizens, and businesses. “The federal government’s additional tax revenue puts it in a position to provide assistance at the local level as well as to lower the electricity tax,” Kretschmer said after an off-site cabinet meeting in Plauen. Due to a sharp rise in energy costs, trading in CO2 allowances must also be suspended. The federal government should help municipalities by initially taking over funding for long-term care. However, given the municipalities’ immense deficits, this can only be a first step. “More must follow,” Kretschmer emphasized. The latest tax estimate showed that the federal government can expect 4.1 billion euros more next year than previously anticipated. However, because the improved economic situation limits how much debt it can take on and the planned income tax reform will cost around 1.7 billion euros, the Ministry of Finance does not yet see any new room for tax relief. Copyright 2026, dpa (www.dpa.de). All rights reserved
