Saxony's government agrees: double budget brings 240 million more!

Saxony's government agrees: double budget brings 240 million more!

On June 19, 2025, the Saxon state government reached an agreement with the Greens and the Left on the double budget for 2025 and 2026. At a time when economic challenges are noticeable, this vote was an important signal for politics in the Free State. Loud daily news The negotiated draft includes some crucial adjustments and additional funds amounting to around 240 million euros.

The additional funds will primarily flow into educational, social and environmental areas, which is important for many citizens. Specific measures include an annual injection of one million euros into the climate fund and an increase in state daycare subsidies. The planned cuts in the social sector were initially viewed critically, but have now been reversed. The total budget of the Ministry of Social Affairs will increase by around 90 million euros.

Despite tense economic conditions

The current economic situation in Saxony is characterized by a decline in gross domestic product and rising inflation. The Free State only benefited to a limited extent from this, as tax revenue is mainly due to inflation, as is the case finanzen.sachsen.de notes. Expenses exceed income, and personnel expenses in particular have increased by around 600 million euros due to collective bargaining agreements. In order to counteract the future consolidation pressure, a transitional budget was drawn up, which is also intended to prepare structural reforms.

The draft budget also calls for special cuts, including the withdrawal of 1.3 billion euros from the budget balancing reserve. This entails necessary recalibrations in the various ministries. Above all, investments in education have been stabilized at 16 billion euros, and no savings are being made in the areas of youth development and security.

Focus on innovation and investment

Another important aspect is the investment in Saxony as a business location. The budget of the Saxon State Ministry for Economic Affairs, Labor, Energy and Climate Protection amounts to almost 1 billion euros and is intended to promote innovation. Particularly noteworthy here are the projects under the European Chips Act, which will be supported with 118 million euros in 2025 and 136 million euros in 2026, as shown on smwa.sachsen.de is to be read.

The Free State plans to continue promoting the regional economic structure as well as the EU programs for digitalization and market launch at a high level, with considerable funds being earmarked for vocational training and securing skilled workers. Saxony is sending a clear signal that the path to the future is being paved even in difficult times.

Finally, the budget is expected to be approved in just one week. The pressure to resolve the whole thing quickly remains high, as thousands of jobs are at risk if no decisions are made by the end of June. Changing majorities in the state parliament show how important shared responsibility is for Saxony's future.