Domestic - Taxpayers' group issues caution regarding the usage of pension funds.
The Taxpayers' Association in Baden-Württemberg disapproves of suggestions to reduce regular payments into the civil servants' pension fund to address budget shortfalls in the upcoming dual budget for 2025/26. Eike Möller, the state government's leader, voiced his concerns against such measures in Stuttgart, stating that such tricks do not align with fiscal responsibility. He added that the pension fund is intended to ease future pension obligations, making it a burden on future generations and fostering discontent with politics. A representative from the Finance Ministry refused to comment.
The Finance Ministry reported that the state has been setting aside funds for an increasing number of pensioners since 2009. Since 2023, 725 million euros were added to the pension fund, with a target of 768 million euros this year. The current value of the fund for pension assets is approximately 11.4 billion euros. The number of pension beneficiaries at the beginning of 2024 was approximately 151,000 people.
Möller advocated for the inclusion of a sustainability factor in pensions, suggesting that pension increases be reduced if the ratio of contributors to pension recipients declines. He also pointed out that the ratio of taxpayers to pension recipients would be relevant in this context.
Hanna Binder, deputy state head of the Verdi union, argued that abolishing the debt brake was necessary to introduce more revenue into the system. She stated that pensions are legally guaranteed and that the long-term financial burden would not be reduced by these tactics. FDP group leader Hans-Ulrich Rülke condemned the Green-Black coalition for resorting to manipulating the pension fund as a way to make savings. He explained that reduction of payments into the pension fund would result in additional debt, as costs would be transferred to the future.
The Taxpayers' Association proposed potential measures to achieve savings, such as lowering building standards for state-owned buildings, reassessing the reactivation of abandoned railroad lines, and canceling the construction of bike paths where alternative routes were already available. Möller suggested consolidating departments to reduce expenses.
Despite the slight increase in tax revenue, the Finance Ministry estimated a budget deficit of at least 2.5 billion euros for the upcoming budget adjustment. The Taxpayers' Association's forecast serves as a basis for deliberations on the next dual budget from 2025 to 2026, which the Green-Black coalition aims to create this year.
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Source: www.stern.de