Debt of the Saxon municipalities increased

Saxon municipalities have a low level of debt per capita compared to the rest of Germany. However, the level of debt has recently risen significantly. This was announced by the Federal Statistical Office in Wiesbaden on Friday, citing a model calculation on debt in the so-called non-public sector.

The debt burden per inhabitant in the Free State was therefore 2809 euros. This is the second-lowest figure after Brandenburg (2534 euros). The municipalities and municipal associations in Saarland had the highest per capita debt at 6083 euros.

However, according to the Federal Statistical Office, municipal debt in Saxony rose by 9.5 percent in the sale of the year. This is the highest figure of all federal states. There was an increase in debt, particularly in the independent cities of Dresden, Leipzig and Chemnitz.

At the end of 2022, municipalities and municipal associations nationwide had debts of 313.9 billion euros to banks and private companies. Per capita debt across Germany amounted to 4034 euros. Debt had risen by 4.3 percent within 2022.

The model calculation includes the debt of municipal core and extra budgets as well as the debt of extra budgets and other public funds, institutions and companies in which the municipalities have a stake, according to the Federal Office. In addition to credit institutions, the non-public sector also includes insurance companies, for example.

The statistics office pointed out that the city states of Bremen, Berlin and Hamburg are not included in the results. They are assigned to the official financial statistics at the federal state level and not the municipal level.