Structural deficit in the coming years
Mayor and treasurer inform about the upcoming double budget
Drawing up a valid budget for Chemnitz for the next two years will be a challenge. Mayor Sven Schulze and Treasurer Ralph Burghart have now informed the city council groups about the current status of planning and the key financial figures.
According to this, the draft for the coming year so far envisages a deficit of around 50 million euros, while the treasury is currently forecasting a deficit of around 57 million euros for 2024.
The reasons for the high deficit include the massive rise in energy costs, tariff increases, higher subsidies to municipal subsidiaries and increased compulsory expenditure in the social sector.
Lord Mayor Sven Schulze: "The upcoming budget needs to be clearly prioritised in order to be approved by the regional authorities. I am therefore counting on responsible and constructive cooperation with the city councillors in order to be able to adopt the two-year budget in March as planned."
Treasurer Ralph Burghart: "My guiding principle as treasurer is that we draw up a budget that is responsible and future-orientated. The current financial situation is serious and we don't have much room for manoeuvre. In addition, we have been instructed by the state authorities for the 21/22 budget to work towards ensuring that the requirements for a statutory budget balance can be met for the financial years from 2024 onwards."
The entire budget package for the next two years is to be presented to the city councils for discussion at the beginning of next year. Adoption is planned for the budget meeting in March. The adopted budget will then require approval from the regional authorities.