Dresden approves new budget: Saving despite being debt-free!

Dresden approves new budget: Saving despite being debt-free!

There is positive news in the Saxon state capital of Dresden today: the budget for the years 2025 and 2026 was approved by the state management with almost no conditions. This is an extraordinary development, because Dresden has the fewest financial problems even among the Saxon districts and independent cities. Nevertheless, the city is going through stormy times, because the approval of the budget also means the loss of the debt freedom that it has had since 2006. This raises questions about what savings need to be implemented to meet the new challenges, as dnn.de reports.

The Dresden city administration has already announced that savings will particularly affect the areas of youth centers, advice centers and cultural offerings. At the same time, there are plans to digitize administrative processes with the city forum and thereby save costs in the long term. The current economic situation in Germany, which is characterized by rising inflation and a decline in gross domestic product, is forcing the city to set priorities.

Household details and financial challenges

The new double budget has a total volume of more than 50 billion euros, making it the largest budget Saxony has ever had. The focus is on stability in the fulfillment of state tasks and the promotion of various projects in the areas of economy, science, education, culture and the environment. The budget plan stipulates that expenditure exceeds income, which is due in particular to increased personnel expenses. According to staatsregierung.sachsen.de, spending on personnel has increased by around 600 million euros, and spending in the area of ​​migration and asylum has also almost reached its 2016 peak.

The cuts required will be noticeable. This will result in a withdrawal of 1.3 billion euros from the budget balancing reserve and a reduction in payments into the generation fund by 500 million euros. Nevertheless, youth support remains a priority to mitigate the long-term effects of cuts. Cultural funding also remains stable and important, despite the overall difficult financial conditions.

Looking into the future

The current heat wave, which is affecting Dresden with temperatures of up to 35 degrees and an increasing risk of forest fires, is compounding the challenges the city is facing. In addition, the Elbe's water level is only 60 cm low, which limits the operation of the popular steam ships. Despite these problems, the Dresden clinics are well positioned and are investing 200 million euros in medical care to respond to the growing number of older patients.

Another event that is in focus in Dresden today is the memorial event for Marwa El-Sherbini in Marwa-El-Sherbini Park at 5 p.m. At the same time, the film nights on the banks of the Elbe are on the agenda, where “Gladiator II” will be shown at 9:30 p.m. These events show that despite the challenges, there is still room for cultural experiences. But the city must now have a good hand in order to master the coming years. It remains to be seen how the situation develops and what steps the city administration will take next.

It's a good time to take a look into the future. The structural reforms that are now on the agenda demand everything from the decision-makers in Saxony. Understandable compromises in the minority government are required so that the challenges of the next few years can be overcome. finanzen.sachsen.de emphasizes that all MPs are called upon to work together and act responsibly in order to take the necessary steps for the well-being of the citizens of Saxony.