Saxony must compensate for a deficit of 2.9 billion euros

Saxony has to balance a deficit of 2.9 billion euros in the future double budget (symbolic image). / Photo: Hendrik Schmidt/dpa

Wage increases in the public sector are priced in

It is still unclear to what extent the individual ministries will have to make savings. The individual departments are aware of the difficulty of the task, emphasized Piwarz. Wage increases for the public sector have already been factored in - but not to the extent of the current trade union demands. "Provisions have been made."

At least 6,131 jobs are to be cut by 2040

The Saxon minority government made up of the CDU and SPD discussed key figures for the budget at a budget meeting in Schmochtitz (Bautzen district) on Monday and Tuesday. According to Piwarz, staff cuts were also discussed and a corridor of at least 6,131 jobs to be cut by 2040 was defined. This figure corresponds to the expected decline in population.

Staff reductions due to high retirement rates can be achieved without any problems

According to Piwarz, staff reductions due to high retirement rates can be achieved without any problems in the coming years. Many more employees will retire than the job cuts envisage. Nobody needs to fear for their job. The companies have a duty to develop appropriate concepts and set priorities.

According to Piwarz, there are currently 88,466 jobs in the budget - not including apprenticeships and project positions. In the middle of this year, around 4,500 positions were unfilled.

Government remains dependent on the cooperation of the opposition

At the outset, the Finance Minister reminded the audience that the government was facing an extensive parliamentary procedure due to the lack of a majority in the state parliament. It was therefore right and important to take the time to discuss everything in detail. The preparation of the budget is on schedule.

The Saxon government was also dependent on the cooperation of the opposition for the current double budget. The Greens and the Left Party got involved and in return were able to include their own projects in the budget.

Dissent within the coalition on the issue of new borrowing

The minister admitted that there was still dissent within the coalition on the issue of borrowing. The different positions would have to be resolved by the final budget meeting in May 2026. This is when the government's draft budget is to be adopted.

The SPD, Greens, Left Party and BSW believe that borrowing is necessary for investments. The AfD is against this. The CDU also wants a budget without debt.

According to the law, the federal states can borrow to a certain extent. The Basic Law grants them a credit limit of 0.35 percent of gross domestic product per year. According to Piwarz, this would be around 700 million euros per year in the case of Saxony.

Saxony must compensate for a deficit of 2.9 billion euros

Wage increases in the public sector are priced in

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