Money Management - Interest costs for the state rise in Sachsen-Anhalt
Recently, the German state of Saxony-Anhalt had to shell out a hefty sum for interest payments, with a total of 379.5 million euros due, as per the announcements by the Ministry of Finance in Magdeburg. This figure is a significant increase from the 273.4 million euros spent in the preceding five years (in 2022). A decade prior to this, the expenditure on interest had peaked at 713.4 million euros, but dropped thereafter.
Interestingly, in 2023, Saxony-Anhalt reaped substantial interest income from its financial investments for the first time, according to the Ministry of Finance's spokesperson. The total sum collected was around 55 million euros. Why does this matter? This income fairly offsets the state's interest expenses, reducing the actual increase from 2022 to 2023 to approximately 51 million euros.
The State Court of Auditors recently urged the state to allocate more funds to reducing their debt load. Kay Barthel, Court of Audit President, mentioned that soaring interest rates were eating away at the state's budget flexibility. The Ministry of Finance reveals that the state's debt pile reached around 22.9 billion euros towards the end of 2023.
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Source: www.stern.de
