Budget crisis in the Bautzen district: deficits up to 40 million euros!

Budget crisis in the Bautzen district: deficits up to 40 million euros!

Budget deficit in the Bautzen district: Red!

Like a shadow over the district of Bautzen, a huge budget deficit for 2025 and 2026. At the recent meeting of the district councils on September 30, 2024, Jörg Szewczyk announced alarming news. The planned 681.5 million euros for 2025 and 700 million euros for 2026 are far from sufficient to cover the enormous costs. Instead, a deficit in the millions per year will threaten, and the actual figures are only visible during the annual financial statements. It is shocking that the district shakes on the "piggy bank" by means of its reserves in order to make the budget approved at all. Anyone who thinks the problems are easy to solve is wrong: deficits of up to 40 million euros annually could soon become a painful reality!

rapidly increasing debts and increasing circular levy

The debt in the district shows a worrying development. For 2025, the debt level per inhabitant will increase to EUR 225.26 and until 2026 to 236.79 euros - nobody can stop it! From the point of 250 euros per capita there will be serious consequences, warns Szewczyk. The key to the financial difficulties? The exorbitant expenditure for social benefits that the health insurers sweep away! It is even reported that the district council had to grant an additional 8.2 million euros in 2023 to cover the oppressive costs. One way out could be the increase in the circular levy that helps the cities and municipalities to finance public services. Currently at 33.5 percent, it is to be increased to 34.5 percent. The district of Bautzen is the same compared to other counties - but whether that is enough remains questionable!

The clock ticks: Decision in December

The pressure is growing, because the discussion about the budget is now carried into the committees and political groups. On December 16, 2024, the district council should advise and coordinate the budget - the clock ticks! If the new double budget comes into force in February 2025, it remains to be seen whether this is enough to tame the financial turbulence. Savings and borrowing seem unavoidable, while those responsible carefully look into the future. But the path becomes rocky and the signs are on storm!

KSL / 23.10.2024