Municipal budget 2021/2022 approved
State authorities approve Chemnitz city budget with conditions - borrowing only possible under certain conditions
The State Directorate of Saxony has approved the Chemnitz City Council's budget with conditions. This means that the budget is now officially authorised.
At its meeting at the end of March, the city council adopted the budget for this year and the coming year, which comprises around 879 (2021) and 887 (2022) million euros in the operating budget. Around 92 million euros are earmarked for investments in 2021 and around 110 million euros in 2022.
The budget situation is tense due to the coronavirus pandemic and the resulting sharp drop in tax revenue.
With its decision, the Saxony state government has conditionally approved the possible loans for this year totalling around 84 million euros. The authority has made the credit authorisation for the coming year subject to the condition precedent that the city of Chemnitz can prove that it will be able to manage without permanent cash loans in 2023.
Treasurer Ralph Burghart: "I am satisfied that our budget has now been approved, that we have planning certainty and that we can begin necessary measures. On the other hand, the condition imposed by the state government shows that the room for manoeuvre for new investments will become smaller in the coming years. As a result of the reduced tax revenue due to the coronavirus pandemic, budget planning from 2023 onwards will be correspondingly challenging. However, thanks in particular to our Capital of Culture 2025 project and the associated funding, we will still be able to make some new things happen."