The Free State of Saxony will have to make do with significantly less tax revenue this year and the next two years than expected in May. According to the Ministry of Finance, 19.1 billion euros can be expected as a result of the October 2024 tax estimate. This is around 350 million euros less than the budget estimate.
For 2025 and 2026, the forecast assumes expected tax revenues of 19.5 billion euros and 20.3 billion euros respectively - around 150 million euros less than predicted in May. "In order to get our finances under control in the long term, there is no way around structurally effective budget consolidation with clear priorities," said Finance Minister Hartmut Vorjohann (CDU).
According to the new forecast, however, local authorities can expect slightly higher tax revenues. The main reason for this is the positive development of trade tax in many cities and municipalities. Municipal tax revenues of 4.9 billion euros are expected for this year - 5.0 billion euros for 2025 and 5.2 billion euros for 2026.
Copyright 2024, dpa (www.dpa.de). All rights reserved
