Saxony before tax reductions: Kretschmer fights for compensation payments!
Saxony before tax reductions: Kretschmer fights for compensation payments!
The financial course in Saxony is very popular, but the coming years will bring challenges. As the sächsische.de 2029 must expect up to 830 million euros less tax revenue. This is due to the loss of billions of tax relief that the Federal Government decided to boost the economy. The first negative consequences are already clearly visible: in 2023 Saxons are missing nine million euros, and 59 million next year. Until the matter comes to an end, this will have an impact.
Not only the Free State itself, the municipalities also have to deal with the financial losses. According to the federal plans, these must be up to 400 million euros less by 2029. Therefore, Prime Minister Michael Kretschmer (CDU) promoted a balance of loss. In his talks with the federal government, he emphasized that the tax revenue of the municipalities must not fall under the chair. The compensation should be done by a higher proportion of sales tax. Kretschmer can already look back on successful negotiations that will refer to the period from 2025 to 2029.
The Federal Council and the approval of tax relief
The ball is currently in the Federal Council's field, which will vote on the waiver of tax revenue on Friday. Kretschmer described the tax relief package as a "real instrument", which will only be supported by the federal states on the condition of the financial compensation. All prime ministers have directed this claim to the Federal Government in a joint declaration, since the federal states see themselves as "lawyers of the municipalities" and urge sustainable financing. For 2025 and 2026, the tax estimates are expected with lower income, which are also due to changes in tax law.
like Volkssmme.de , corporation tax will be reduced from 2028. Overall, these measures lead to a decline in tax revenue of 48 billion euros, with 13 billion euros on the municipal level and 16 billion euros on the federal states alone. Kretschmer has repeatedly emphasized that the countries cannot bear the costs of the relief alone and that it wants to demand a mechanism of connexuality in the coming days.
tax estimates and their effects
The May tax estimates also show a stable development for the years 2025 and 2026, which are solid with 19.7 billion euros and 20.3 billion euros, but are 121 million euros above the estimates of October 2024. Nevertheless, the Saxon municipalities face a deficit of 115 million euros in these two years. Finance Minister Christian Piwarz has already announced that he is trying to compensate for this deficit with the country's additional tax revenue. One of the positive news is that the Saxon financial equalization should contribute to cushioning the minor revenue.
In summary, it can be said: Saxony faces a challenge that requires well -thought -out solutions. Because the federal financial promises are only binding with the federal budget for 2026. The Bundestag is already working on the budget plans that are to be adopted in September. Meanwhile, Kretschmer made it clear that Berlin has to make the right course for future growth in order to reduce energy costs and reduce bureaucracy. So it remains to be seen how the situation in the Free State will develop.continue to pursue the developments on Finance Saxony to observe the effects on the Saxon economy and the municipalities.
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| Ort | Sachsen, Deutschland |
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