NRW is required to borrow additional funds. - A billion-dollar gap materializes at Wüst.
Due to the poor economic climate in Germany, fewer taxes are being collected. As a result, the federal government, states, and municipalities are projected to receive 21.9 billion euros less in revenue than they had planned in the fall. The North Rhine-Westphalia Finance Ministry predicts that, over the course of the 2024-2028 tax forecast period, there will be a budget shortfall of 4.9 billion euros. For the 2024 fiscal year, they estimate a deficit of 1.2 billion euros and approximately 1.3 billion euros in 2025.
To counteract these financial difficulties, North Rhine-Westphalia's Finance Minister, Marcus Optendrenk (54, CDU), has implemented austerity measures in government departments. However, these measures are no longer sufficient. Optendrenk stated, "These tax forecast effects will be compensated for by North Rhine-Westphalia through the use of the conjuncture component, which is anchored in the debt brake. It will be introduced through a supplementary budget."
The debt brake rule permits taking on loans during economic downtimes, but they must be repaid as the economy improves. With this in mind, the 2024 budget (102 billion euros) can still be implemented as planned. However, opposition members aren't happy with this. SPD budget expert Alexander Baer (49) calls it "budgetry fraud." Baer claims, "Black-Green is playing a trick in fiscal policy. The budget for the current year, under review by the Constitutional Court, seems to be disintegrating. Now, the finance minister must take on debt."
Whereas the finance minister seemed set against taking on debt just a few days ago, he no longer has a choice. Baer further highlights, "The tax relief decided by the federal government at the end of 2022 would mean a permanent burden on the North Rhine-Westphalia budget of more than four billion euros per year. The impact of this measure would be minuscule and ineffective for the citizens."
This stunt in financial policy has not gone unnoticed by the opposition.
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