Saxony's government agree: double budgets brings 240 million more!

Saxony's government agree: double budgets brings 240 million more!

On June 19, 2025, the Saxon state government reached an agreement with the Greens and Left over the double budget for 2025 and 2026. At a time when the economic challenges are noticeable, this coordination was an important sign of politics in the Free State. According to Tagesschau includes the negotiated design and additional funds of about 240 million Euro.

The additional funds are particularly flowing into education, social and environmental areas, which is important for many citizens. Specific measures include an annual supply of one million euros to the climate fund and an increase in the state daycare subsidies. The planned reduction in the social area, which has now been withdrawn, was critically viewed. The total budget of the Ministry of Social Affairs increases 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 increasing inflation. The Free State only benefited from this, since the tax revenues are predominantly inflation-related, such as finanzen.sachsen.de . The expenditure exceeds the income, especially personnel expenses have increased by around 600 million euros due to tariff financial statements. In order to counteract the future pressure of consolidation, a transitional budget was developed, which is also intended to prepare structural reforms.

The budget draft also provides for special incisions, including the withdrawal of 1.3 billion euros from the budget equalization reserve. This leads to the necessary recalibrations in the various ministries. Above all, the educational investments could be stabilized at 16 billion euros, and in the areas of youth promotion and security are not saved.

focus on innovation and investments

Another important aspect is the investments in the Saxony business location. The budget of the Saxon State Ministry for Economic Affairs, Work, Energy and Climate Protection is almost 1 billion euros and is intended to promote innovations. Particularly noteworthy here are the projects in the context of the European Chips Act, which are supported at 118 million euros in 2025 and 136 million euros in 2026 href = "https://www.smwa.sachsen.de/blog/2025/smwa-doppelhaushalt-2025-26-klare-auf-inovation-und-investitions/" Class = "Source_3"> Smwa.sachsen.de

The Free State plans to continue promoting the regional economic structure as well as the EU programs for digitization and market launch at a high level, whereby considerable funds are scheduled for vocational training and securing skilled workers. Saxony thus sets a clear sign that even in difficult times the way will be paved into the future.

Finally, the budget is expected to be decided in a week. The pressure to clarify the whole thing remains high, because thousands of jobs are on the brink, should not make decisions by the end of June. Changing majorities in the state parliament show how important a common responsibility is for Saxony's future.