North Rhine-Westphalia presents billion-dollar budget for 2026!
North Rhine-Westphalia has presented the draft budget for 2026, which invests in the future and promotes reforms in education and security.
North Rhine-Westphalia presents billion-dollar budget for 2026!
North Rhine-Westphalia today approved the draft budget for 2026, which has a volume of around 112.2 billion euros. The Finance Minister Dr. Marcus Optendrenk emphasizes that this budget is significantly influenced by the weak economy in Germany. The governing coalition has focused primarily on important areas such as children, youth, education, internal security and strengthening communities.
The budget plan provides for sustainable and generation-appropriate financial planning in order to secure the future viability of North Rhine-Westphalia as a business location. Investments in the business area of the Ministry of Economy, Industry, Climate Protection and Energy are increasing by more than 50 percent compared to 2025. This is intended to help achieve key goals such as strengthening medium-sized businesses, expanding climate-neutral industry and improving the digital infrastructure.
Investments and support for municipalities
A total of around 12.1 billion euros is planned for targeted investments and modernization projects. What is particularly noteworthy is that 86 percent of voluntary state funds flow into support and financing programs for companies. Planned projects to reduce energy costs and expand renewable energies are also to be implemented. In addition, a digital collaboration platform for approval processes is being sought, which is scheduled to be introduced in 2026.
In this draft budget, the municipalities benefit from record allocations of almost 16.5 billion euros, which corresponds to an increase of 684 million euros compared to 2025. In addition, 250 million euros are made available annually to solve old debts. This shows the state government's intention to sustainably relieve the burden on municipal finances.
Education support and internal security
A total of 43.4 billion euros are earmarked for education in 2026, which is 1.7 billion euros more than in the previous year. This also includes significant investments in the expansion of open all-day education in the primary sector, which amount to almost one billion euros. In addition, early childhood education will receive an additional 370 million euros.
More than 6.7 billion euros are planned for the area of internal security, including around 4.5 billion euros for the police. Despite the extensive investments, budget discipline requires consolidation measures amounting to around 3.4 billion euros. This includes, among other things, a planned job cut of ten percent in ministerial administrations over five years.
Key financial data
Net borrowing of around 4.5 billion euros is also a central element of the budget. This draft does not yet take into account the funds from the federal government's special infrastructure funds. The main key data of the draft budget for 2026 are as follows:
| position | Amount (in billion EUR) |
|---|---|
| Household volume | 112.2 |
| Tax revenue | 81.7 |
| Tax ratio financing | 72.8% |
| Personnel expenses | 39.7 |
| Personnel expenditure ratio | 35.4% |
| Capital expenditure | 12.1 |
| Investment rate | 10.8% |
The budget plan will be discussed in the state parliament after it has been submitted by the finance minister. It is examined in several readings by the specialist committees and the Budget and Finance Committee before it is finally proclaimed as a budget law. This is intended to ensure that the country's financial needs are effectively identified and met, as well as the Financial administration.NRW explained.
North Rhine-Westphalia is thus laying the foundations for a responsible and future-oriented financial policy that meets both the current challenges and the long-term goals of the state State.NRW reported.