State directorate approves budget for 2013
Yesterday, the State Directorate of Saxony approved the budget plan and the budget bylaws of the City of Chemnitz for 2013 with one condition.
"With the budget approval, the investments planned for this year can now be started quickly," says City Treasurer Berthold Brehm. One focus is the special schools programme, which provides for an investment volume of around 40 million euros by 2014.
The 2013 budget provides for income totalling 574.9 million euros. This is offset by ordinary expenses totalling 600.1 million euros. It was therefore not possible to achieve a balanced budget, even with the efforts to consolidate the budget. This target is still planned for 2015.
The basis for the approval of the budget was that it can still be regarded as lawful in accordance with the transitional regulation for the accounting valuation of the budget. This is reflected in the financial budget for the years 2013 to 2016, which shows a positive and increasing cash balance from current administrative activities. Borrowing for investments and investment promotion measures totalled EUR 23.4 million in 2013.
The conditions imposed on the city by the state authorities stipulate that if the consolidation measures from the Ekko cannot be fully or only partially realised, compensation must be ensured through alternative measures.
This clear signal is also sent out for the future by the agreed consolidation, which runs until 2015. The state authorities made it clear in their decision that an increase in expenditure is only permissible if it is offset by new consolidation potential or the cancellation of planned expenditure.