Saxony-Anhalt municipalities on the edge of the financial abyss!
Saxony-Anhalt municipalities on the edge of the financial abyss!
In Saxony-Anhalt, the financial situation of many municipalities and counties looks anything but rosy. The debt has now reached dizzying heights. There are voices that speak of a real record debt in cities such as Dessau-Roßlau and in the district of Anhalt-Bitterfeld. The city and municipal association announced that the financing of the municipalities had actually failed. Again and again there are no reforms of the financial equalization law, while the municipalities are trying to contain their expenses, but often rather act half-heartedly, as MDR reports.
The economic framework is anything but stable. Rising wages and increasing material costs contribute to the growing deficit. In addition, some creative solutions for household renovation do not seem to be fruitful. For example, Wittenberg plans to host the State Garden Show, but the financing remains uncertain. The financial uncertainties also pile up in Dessau-Roßlau, where a federal garden show is coming up by 2035. Costs of around 140 million euros are feared here, and no solution is in sight.
The oppressive debt load
The numbers speak for themselves: On March 31, 2024, the preliminary debt of the municipalities and municipal associations in Germany was a total of 156.21 billion euros, of which the cash loans made a significant share, namely 122.47 billion euros. For comparison: the year before it was only 142.87 billion euros, which shows a significant increase, as published by Destatis
The situation is not only worrying for Saxony-Anhalt: the state's debt was 3.241 billion euros, while North Rhine-Westphalia has the list of 57.828 billion euros. These numbers throw a bright light on the financial challenges with which the German municipalities are confronted. The unstoppable trend of rising debts in recent years, due to various crises, is also evident in public budgets as a whole. While the expenditure has risen continuously since 1950, they exceeded the income in almost every year, which underlines the need for incisive reforms, as the [Bertelsmann Foundation] (https://www.bpb.de/kurz-knapp/sumen-und-fakten/sozialit-in-deutschland/61867/ Development-der-oeffal-Finance/)) emphasized.
financial challenges and helpless measures
Finally, there are also dark examples: the Dessau-Roßlau Clinic reported losses of around 60 million euros, while Anhalt-Bitterfeld operates an unprofitable birth clinic and receives financial support from the social security funds despite the required personnel loss. Austerity measures often do not seem to achieve the desired effect, and the declining debts have long been forgotten since 2019. Instead, the focus is on new debts to cover the running costs. In view of this helplessness, the question arises as to how long the citizens will accept this.Overall, the debt in Saxony-Anhalt and many other regions represents a huge financial problem that will only be solved by a fundamental revision of the political and financial strategies. It remains to be hoped that those responsible will react appropriately to all of these challenges - after all, there is a lot at stake. A rethink is urgently needed.
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| Ort | Dessau-Roßlau, Deutschland |
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