Dresden's budget 2025 approved: Save despite billion dollar investments!

Dresden's budget 2025 approved: Save despite billion dollar investments!

Dresden, Deutschland - The city of Dresden has finally clarified its budget for the years 2025 and 2026. President of the state directorate, Béla Bélafi, has approved the double budget statute, which is a significant step in view of the current financial challenges. This is the first time since 2007 that such a decision has not been given automatically. Mayor Dirk Hilbert (FDP) accepted the decision of great progress, as Sächsische.de reports .

With a total volume of over five billion euros, the household comprises all income and expenses of the city and serves as the basis for administrative work. The city council had already decided in March after long discussions. Massive cuts, especially for the Dresden transport companies and in the health and social sector, could be averted. Nevertheless, there will be savings, such as Medienervice Saxony informed .

financial challenges and investments

The approval was mainly necessary because the city faces financial challenges. These affect particularly infrastructure projects, including the construction of the Carol Bridge. Around 2.4 billion euros are available for 2025, and even 2.5 billion euros for 2026. The planned investments amount to 255 million euros in 2025 and 360 million euros in 2026, with the focus on school building and increased investments in road and civil engineering. However, an upcoming shortfall of around 239.4 million euros in 2026 accuses its shadow, which is why the city urgently has to ensure its financial performance.

An innovative approach to stabilize the financial situation will be to accept investment loans. This is done in accordance with the requirements of the state directorate, which calls for economical housekeeping and clarity to finance the investment program. The approved maximum amounts for cash loans include 88 million euros for the municipal clinic in 2025, followed by 98 million euros in 2026.

A look over the national borders

A comparison with the financial results of other municipalities shows an interesting picture. So report Hessische Authorities that the municipalities there achieved a total surplus of over 1.2 billion euros in 2022. Although many municipalities had expected deficits, 98 percent of the Hessian municipalities were able to compensate for their budget and increase their reserves to over 7.5 billion euros. Such successes could serve as a model for the challenges in Dresden.

Dresden is faced with a crucial phase. While investments and future projects are on the agenda, it is up to the city to set the course for a solid financial future. The coming months will show whether it will be possible to put the statutory requirements of the state directorate into practice and to set the course for a positive economic scenario.