The municipalities in Germany incurred 31.9 billion euros in new debt final 12 months. This was introduced by the Federal Statistical Office. And this although tax revenues have really elevated.
The financing deficit of municipalities in Germany rose to a document degree of 31.9 billion euros final 12 months. The Federal Statistical Office introduced this in keeping with preliminary outcomes of the quarterly money statistics. In 2024 the deficit was nonetheless 24.8 billion euros.
Accordingly, 7.5 p.c of bills weren’t lined by common earnings final 12 months. They had been more and more financed by taking out money loans. At the identical time, municipal tax revenues rose by 3.4 p.c to 136.5 billion euros. The deficit grew as a result of expenditure as soon as once more rose sooner than earnings, the statisticians notice.
Higher bills for personnel and Social advantages
The principal driver of expenditure was personnel prices. They rose by 6.8 p.c to 113.4 billion euros. The causes for this are the wage improve for federal and native authorities workers in April 2025 in addition to new hires by the native authorities.
Spending on social advantages rose by 5.9 p.c to 90.0 billion euros. In distinction, advantages underneath the Asylum Seekers Benefits Act noticed a major decline of 10.9 p.c to three.4 billion euros.
Sharp criticism from the town council
“The cities contribute a quarter of state spending, but only have a seventh of state tax revenue,” criticized Christian Schuchardt, common supervisor of the German Association of Cities. This can not proceed like this, the federal monetary system should be reorganized, he continued.
The Association of Cities demanded that the federal authorities present annual emergency assist of not less than 30 billion euros, which should be included within the subsequent finances. In addition, the cities must be relieved of social spending and native revenues must be strengthened.
https://www.tagesschau.de/inland/innenpolitik/kommunen-rekordschulden-100.html