Budget freeze in parts of the city administration from 2022
Treasurer responds to tense situation and requirements of the state directorate
The city of Chemnitz has imposed a budget freeze on some areas of the city administration for the coming year. This is due to the tight budget situation and the requirements of the state administration in connection with the 2021/2022 double budget.
For this reason, treasurer Ralph Burghart announced that a budget freeze would be imposed on certain budget items from 1 January 2022.
The scope of the freeze is approximately one per cent of the operating budget.
The city aims to save around 6.3 million euros with these measures.
The state directorate had obliged the city to ensure that sufficient liquidity is available before utilising the credit authorisation in 2022. In addition, the budget for 2023 and the following years should be structured in such a way that it can manage without cash loans.
"It is not only the ongoing coronavirus pandemic that is placing a heavy burden on the city's budget. Rising costs for electricity, gas and oil, significant increases in social security contributions and personnel costs on the one hand are offset by lower income from fines, Hartz IV and the lump sum for asylum seekers on the other. Without strict spending discipline, we will not be able to fulfil the requirements of the regional authorities. The budget freeze mainly affects internal administrative areas," says treasurer Ralph Burghart.