Court of Auditors warns: Thuringia is threatened with a deficit of billions!

Court of Auditors warns: Thuringia is threatened with a deficit of billions!

In Thuringia, the state's finances are the focus of a comprehensive audit. Every year, around one billion euros are available in various funding sources, which opens up the possibility for numerous projects and programs. But the Thuringian State Audit Office warns against excessive spending and calls for a critical review of the use of this money. According to the MDR Thuringia closed last year with a deficit of 327 million euros, which was offset by the state's financial reserves.

Auditor General Kirsten Butzke is calling for more precise control over the use of taxpayers' money. She emphasizes the urgency of the situation and points out that Thuringia faces a budget deficit of around one billion euros annually from 2025. The country's financial situation has deteriorated compared to previous years and compared to other countries. Revenues are no longer growing strongly, which forces state politicians to use future budgets without reserves.

Details about the funding programs

The state labor market program, which costs around six million euros annually, is viewed particularly critically. The Court of Auditors has identified overlaps with federal funding for the long-term unemployed and therefore recommends that the program not be continued in its current form. There is also a need for correction in the state program for democracy and cosmopolitanism, which supports projects against right-wing extremism. What is surprising is that Thuringia is the only federal state to support two research institutions with the same task profile in the area of ​​right-wing extremism.

In Thuringia last year, a total of 552 million euros went to EU programs, 267 million euros to federal-state programs and 280 million euros to pure state programs. The MZ reports that the audit of these expenses is carried out by the State Audit Office with the support of Finance Minister Katja Wolf (BSW). Both state, EU and federal programs are now being put to the test as to the usefulness and efficiency of the spending.

Outlook and opportunities for improvement

The establishment of a budget structure commission is seen as a first step towards improving the financial situation. The state budget was around 13.1 billion euros in 2022 and is expected to rise to over 13.5 billion euros in 2023, although the tax estimate from May predicts a decline in tax revenue of 112 million euros compared to expectations. A further decline of 90 million euros is expected for 2025.

These developments cast a shadow on economic growth in Thuringia. Last year there was a minimal decline in economic growth of 0.2 percent. Given these economic challenges, it is all the more important that Thuringia critically examines its funding programs and spending in order to be able to operate sustainably.