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Saxony-Anhalt is planning a new special fund – what does that mean for us?
Finance Minister of Saxony-Anhalt is planning special funds for infrastructure to use federal funds. Debate about debt brake follows.
Saxony-Anhalt is planning a new special fund – what does that mean for us?
Intensive preparations are underway in Magdeburg to create a separate special fund for infrastructure in Saxony-Anhalt. The Ministry of Finance, led by Finance Minister Michael Richter (CDU), plans to put federal money, the exact amount of which is currently unclear, into this special fund. The aim is to ensure rapid and effective use of funds and thus improve the state's infrastructure. Richter emphasizes that a special fund offers more flexibility than a traditional supplementary budget plan.
However, it is currently not possible to determine the amount of special funds available for Saxony-Anhalt, as it remains unclear how the federal money will be distributed among the individual states. Nevertheless, the state finances must be carefully monitored, as Saxony-Anhalt will have to accept significant losses in tax revenue this year compared to the estimates. For 2025, the Ministry of Finance expects revenue of around 10.036 billion euros, which means around 360 million euros less than in the previously prepared double budget draft. In 2026, a decrease of 596 million euros is expected compared to the original plans.
Discussion about the debt brake
In this context, the debt brake was temporarily suspended for expenditure exceeding one percent of gross domestic product, which particularly affects national defense. Olaf Meister from ALLIANCE 90/THE GREENS criticizes the existing investment backlog and demands that new debt should only be raised for infrastructure and climate neutrality.
Political reactions and challenges
State Minister Rainer Robra (CDU) emphasized the urgent need for concrete laws to implement the debt brake. Two modifications to the debt brake were presented in the debate, which include expanded scope for borrowing and a separate 500 billion euro special fund. Several MPs, including Dr. Andreas Schmidt (SPD), called for investments in fundamental areas such as infrastructure and education.
The discussion also shows the different positions of the parties. This is how Dr. criticized Jan Moldenhauer (AfD) on taking on new debt for Ukraine and the current financial situation in Germany. Jörg Bernstein (FDP) described the new special fund as non-transparent and called for clear priorities. Eva von Angern (Die Linke) turned against the CDU and called for a well-thought-out tax policy and the imposition of a wealth tax. Daniel Roi (non-affiliated) highlighted that the CDU had changed its positions after the election, while Stefan Ruland (CDU) noted that the federal budget was missing 38 billion euros and that the problems therefore remained unresolved.
Although the discussion in the state parliament sparked a lively exchange, no concrete decisions were made at the end of the debate.
For further information on finances in Saxony-Anhalt, visit stern.de and for the relevant political developments landtag.sachsen-anhalt.de.