Havelland in the financial crisis: Kasser loan increased to 70 million euros!

Havelland in the financial crisis: Kasser loan increased to 70 million euros!

Havelland, Deutschland - The financial situation of the municipalities remains tense, and this also affects the Hovelland district. At a summer reception of the district, District Administrator Roger Lewandowski (CDU) spoke about the growing challenges for public budgets. In doing so, he made it clear that the situation was not only problematic, but also nationwide. "It is a bit," as the district administrator emphasized and pointed out that the financial difficulties in many municipalities are becoming increasingly obvious. It is particularly alarming that two days before the summer reception, an engraving decision was made to increase the cash loan.

The cash loan rose from 27 million euros to a whopping 70 million euros to secure the ongoing budgetary obligations. This measure is intended to ensure that social benefits can continue to be paid out after the financial situation was at risk from the lack of income in the emergency services. "We needed a good hand to make this decision," says Lewandowski, who looks optimistically into the future, despite all the adversities.

The entire financial situation under pressure

The municipal financial report of the Bertelsmann Foundation, which determines that the Corona crisis and the subsequent recession in the German municipalities have caused a deficit of at least 17 billion euros. Trade tax revenue collapsed by almost 9 billion euros. This has particularly hit economic -strong regions in which tax losses in the millions are to be complained about. The help of the federal and state governments amount to almost 11 billion euros, but the municipal finances are still on the brink. Cities in North Rhine-Westphalia, Rhineland-Palatinate and Saarland, where high cash loans are dominated, are particularly affected.

and the trends continue: A report by the Federal Statistical Office shows that the municipal financing balance fell from a surplus of 2.6 billion euros in 2022 to a deficit of 6.8 billion euros in 2023. Verena Göppert, deputy general manager of the German City Day, warned of the inevitable deficits in the coming years if nothing changes in finances. "To support the municipalities, a fundamental revision of the financial resources is required," she said recently.

challenges and future outlook

District Administrator Lewandowski called for more freedom of action by MPs at the state and federal level through reduction in bureaucracy and reasonable financial resources from the municipalities. In this context, the upcoming negotiation to the circuit in autumn is of great importance, since the financial politicians of the district have to face this challenge. Despite all the adversities, there are also bright spots: the municipalities were able to generate a surplus in 2020 and reduce the tribute to what encourages the future.

With a increased cash loan, the Hovelland district is now on the scabbard. The challenges are enormous, and it will be all the more important to inform the citizens about possible restrictions and necessary measures at an early stage. Because, as the district administrator expressed it: "We have to take the situation seriously and deal responsibly with it."