Free State approves two-year budget for the city of Chemnitz
The State Directorate of Saxony has approved the 2023/24 biennial budget of the City of Chemnitz. At the same time, approval for the requested borrowing was granted subject to conditions.
The City of Chemnitz must examine and take appropriate measures to avert the permanent threat of a budget deficit and ensure that the budget remains balanced in the period up to 2027.
Treasurer Ralph Burghart: "Firstly, I am delighted that the budget has been approved. The conditions imposed on our budget by the regional authorities are justified. I already said when the two-year budget was presented to the city council that we need to get our structural deficit under control very quickly - in other words, permanently higher expenditure than income. I am certain that we will overcome this challenge together with the city council."
The municipal budget has a volume of around 1 billion euros in both 2023 and 2024.
The city is planning investments totalling around 119 million euros this year and around 126 million euros in 2024. The main areas of investment are road construction, public green spaces, the construction of school buildings, the renovation of sports facilities and the expansion of broadband coverage.
The city is expecting higher income in both financial years, but also a significant increase in expenditure - the latter particularly in the social sector, personnel costs, operating costs and the maintenance of buildings and facilities.
Shortfalls of around 57 million euros are therefore expected in 2023 and around 63 million euros in 2024.