Hesse is planning a supplementary budget: use financial flexibility for municipalities!

Hesse is planning a supplementary budget: use financial flexibility for municipalities!

A significant financial step is imminent in Hesse: The state government plans to submit a supplementary budget for 2025 to the Hesse state parliament. Finance Minister Professor Dr. In this context, R. Alexander Lorz (CDU) emphasized the new regulations on borrowing, which now allow countries to take on debt of 0.35 percent of gross domestic product. This decision by the Federal Council offers Hesse new financial flexibility, which the state government would like to use specifically for the benefit of the state and its municipalities finanzen.hessen.de reported.

Lorz made it clear that the basic legal framework has now been established in order to actively use these new opportunities. However, the cabinet will have to decide next Monday evening on the specific extent of the use of the scope. A key point here is the need for three discussions in the state parliament in order to pass the supplementary budget this year, which is no longer possible in the regular plenary sessions. For this reason, a special session was requested of the state parliament, which is scheduled to take place on October 28, 2025.

Economic contexts and challenges

The decision to use the new leeway comes at a time when the Hessian state government is under pressure, particularly from the ranks of the Greens in the state parliament. They criticize the delay in budget discussions and demand better financing for universities in Hesse. The supplementary budget is intended to have a positive influence on various areas of public life by using the new scope for debt policy.

The legal situation for supplementary budgets has also changed in the federal context. A ruling by the Federal Constitutional Court in November 2023 made it clear that certain loans from special funds that were taken out to deal with the consequences of Corona are no longer compatible with the Basic Law. As a result, projects to renovate buildings, promote renewable energy and various subsidies are affected. This raises questions about how the federal government can finance its planned measures in the future, and it could also have an impact on Hesse's finances, which must be taken into account as part of the supplementary budget zeit.de.

Finally, it is expected that Hesse will have to navigate its financial requirements skillfully in order to take advantage of the new opportunities, while at the same time keeping an eye on the legal and political framework. The supplementary budget will therefore be of great interest not only in Hesse, but also in the context of nationwide challenges.