The cash flow analysis of Saxony's municipalities has revealed a deficit of over one billion euros for 2025. The Saxon Association of Towns and Municipalities (SSG) spoke of a "dramatic negative record". This means that the deficit for 2024 (around 682,000 euros) has been exceeded by more than 50 percent. Higher revenues from sales tax and income tax had not been able to compensate for declines in trade tax.
Municipalities on the brink of being unable to act
"The cash statistics show in black and white what we have been warning about for years. The structural underfunding of local authorities is leading cities and municipalities to the brink of being unable to act," explained SSG President Bert Wendsche. In many places, there is barely enough money for the bare essentials. "Investments are being postponed, infrastructure is wearing out, voluntary services are disappearing - the financial plight has long since become part of people's everyday lives."
