The Saxon government plans to spend approximately 53.5 billion euros over the next two years. “This makes the total budget larger than ever before,” the Ministry of Finance announced. The government’s draft for the two-year budget calls for spending of 26.5 billion euros in 2027, with 27 billion euros planned for the following year. The cabinet approved the draft and forwarded it to the state parliament. We are trying to strike a balance between what is important for the state and the necessary consolidation, said Finance Minister Christian Piwarz (CDU).
Free State Takes on Debt Within Permitted Limits
To finance the budget, the government plans to take out loans. This temporary borrowing amounts to a total of just under 1.5 billion euros. According to Piwarz, this is not intended to be a permanent arrangement.
Job cuts set to gain momentum
With the draft budget, the planned job cuts are set to gain momentum, officials said. A total of 523 positions are to be eliminated in the next two fiscal years. By 2040, the number of positions is expected to be reduced by 8,721. The job cuts will not result in job losses, as approximately 37,000 employees of the Free State of Saxony are set to retire by 2038.
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