The State Directorate of Saxony has authorised the City of Chemnitz to borrow in 2026. Following the approval of the 2025/2026 double budget in summer 2025 (see press release 417/2025), the City of Chemnitz is now fully capable of acting and remains self-determined. Neither the need for cash borrowing (as has already happened in Leipzig, for example) nor the need for supplementary statutes (as is currently being drafted in Dresden) has materialised to date.
Mayor of Finance Ralph Burghart: "Thanks to the tireless efforts of the city council in cooperation with the city administration with regard to the consistent consolidation of the municipal budget, we are one of the few municipalities in Germany to have a two-year budget approved in full. Only thanks to a stringent and transparent approach has it not been necessary to take out a cash loan or commission a budget structure concept. The budget freeze imposed is also very limited compared to many other municipalities. The goal of being able to make independent decisions has always been my top priority and I am delighted that we have been able to achieve this goal thanks to the joint measures."
At the same time, however, it is clear that the city of Chemnitz is still in a very difficult financial situation due to the existing structural deficits. The sharp rise in social expenditure in particular continues to place an enormous burden on the city of Chemnitz. The legal supervisory authority also obliges the City of Chemnitz to take further control measures in the future in addition to the consolidation measures already taken in order to further reduce the deficit. The focus here continues to be on solutions that are as sustainable as possible.
The city budget has a volume of around 1.1 billion euros in both 2025 and 2026, which includes necessary investments for construction measures totalling 80 million euros per year.
Due to significant cost increases in the social and youth sector and high inflation, the City of Chemnitz has planned for a deficit of 58 million euros in 2025 and 108 million euros in 2026. The City of Chemnitz's liquidity is therefore severely jeopardised. The liquid funds are expected to be completely exhausted by the end of 2026. The expected deficit means that the City of Chemnitz will only be able to finance its municipal expenditure with cash advances in future. This means that future investments can only be financed using borrowed funds.
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