Draft budget: local authorities demand more money from the state

Saxony's cities and municipalities are demanding more money from the Free State than provided for in the CDU and SPD's previous draft budget. "The share of municipal allocations in Saxony's state budget must be significantly increased over the next two years," said Bert Wendsche, President of the Saxon Association of Towns and Municipalities (SSG), according to a press release. Fewer and fewer municipalities are able to balance their budgets.

The government's draft budget for 2025 and 2026 envisages an average municipal share of 33 percent - a decrease of two percentage points compared to the past four years. With a total annual budget for the Free State of around 25 billion euros, the SSG estimates that local authorities would be missing out on around 500 million euros a year for ongoing administration and investments. The SSG is particularly critical of cuts to fire protection: in 2026, there would be a shortfall of 8 million euros to meet legal requirements.