Financial turbulence: State government presents surprising invoicing 2024!

Financial turbulence: State government presents surprising invoicing 2024!

Rheinland-Pfalz, Deutschland - On June 17, 2025, the invoice for 2024 was agreed in the state government. The net financing balance amounts to -555 million euros, which represents an improvement of 360 million euros compared to the original estimates. In the estimate, a deficit of -915 million euros was expected under uncertain economic conditions, such as [ots] (https://www.ots.at/presseaus-sung/ots_20250617_ots0125/Collungsschlung-2024-acceptable-abstall-under-called framework conditions) reported.

Finance State Councilor Ludwig Schleritzko characterized the year 2024 as a turbulent and found that great financial and social challenges had to be managed. The reasons for the better conclusion include careful budgeting under difficult conditions. In addition, there was a lower use of funds from the corona fund and a unique accounting effect.

warning of debt

Schleritzko urged a serious financial situation and a threatening debt mountain. It is reported that personnel expenses are continuously increasing. Each salary increase of 1% costs around 15 million euros, and in the past five years there have been salary increases of around 27%. At the same time, the healthcare costs have increased by almost 50% since 2020 and expenditure in the field of childcare.

In order to improve the financial situation, Schleritzko calls for better coordination with the federal government to reduce costs, for example through joint procurement. In view of these circumstances, it is also pointed out that the income is significantly lower compared to the increasing expenditure.

European fiscal rules in the context

Some of the challenges in financial policy are directly related to the new European fiscal rules that came into force at the end of April 2024. According to Bundesbank, 22 out of 27 member states have submitted fiscal plans for the growth of net primary editions. It is important that these plans are negotiated with the European Commission to achieve debt and deficit goals.

The Commission has published reviews and recommendations on the fiscal plans. It is observed that some Member States, including Austria, receive more time with regard to the submission of the fiscal plans, while other countries such as the Netherlands have not submitted any compliant plan. This shows how important a stringent implementation of the new rules is to ensure sustainable financial health.

competition for means and political decisions

In the context of financial challenges, the construction fund of the Bundestag is also relevant, which was decided on September 7, 2021 to support the regions affected by the July flood, as Bundestag. The fund of 30 billion euros is part of the "development aid 2021" and is intended to help to cope with the damage. For this purpose, the application for bankruptcy was temporarily suspended in order to enable the affected regions to have a relaxing phase.

Overall, the current situation shows that the balance between income and expenditure in the public sector is gaining in importance as a central topic. The past few years illustrate how unforeseen events can strongly influence the financial situation of the federal and state governments.