Concerns about Hesse: Court of Auditors calls for thrift and sloppy digitalization

Concerns about Hesse: Court of Auditors calls for thrift and sloppy digitalization

Walter Wallmann, outgoing President of the Hessian Court of Auditors, presented his last annual report for the state finances for 2023 on May 26, 2025 in Wiesbaden. In this report, he expressed fundamental concerns about the country's finances and warned that investments from the federal investment package should only flow into projects that are actually needed. Wallmann emphasized that the funds should not flow into consumption and that the follow-up costs must be taken into account when making investments. It is crucial that none of the billions from the special fund are wasted.

He pointed out that the tax estimate will be significantly lower by 2029 and that US companies are increasingly withdrawing from Germany. Wallmann summarized that the general conditions had deteriorated over the last twelve years and the challenges were increasing in the face of constant crises. The 500 billion euros associated with the federal financial package, of which 100 billion euros will go to states and municipalities, should only be used for additional measures. This is seen as a necessary step to ensure financial stability.

Digitalization and bureaucracy

The State Audit Office has continued to uncover serious problems in bureaucracy and digitalization. There were complaints in seven out of ten Hessian police evidence points examined, and the police will primarily work with paper until the end of 2021. This leads to unclear documentation about the whereabouts of evidence such as drugs and counterfeit money. Although a switch to digital evidence management is underway, the backwardness in various authorities is contributing to unnecessary costs and loss of time.

The audit report on budget and economic management also included the performance of the judiciary. Every year it produces around 21,000 linear meters of documents, with a lot of material being stored unnecessarily. In 2021, over six million euros were spent on archiving, with the separation of 10,000 linear meters being possible. It also turned out that the destruction of old materials by the courts is five times more expensive than hiring private companies.

Challenges and financial situation

The digitization of the land registers has been ongoing for 20 years but is not yet completed, which requires additional funds of around 2.8 million euros. Personnel costs of at least seven million euros would be necessary to transfer the data to a new system. Despite these challenges, the future CDU/SPD state government is planning measures for digitalization and de-bureaucratization, including the creation of an independent digital ministry.

Wallmann also criticized the inadequate safety requirements for wind turbines, which could endanger the country financially. A look back at the finances shows that personnel costs rose from 8.7 billion euros to 11.3 billion euros. Given an expected decline in tax revenues of one billion euros in 2023, it is clear that investments in climate protection and the energy transition remain necessary despite falling revenues.

Overall, the Court of Auditors calls for simpler laws and a waiver of multiple data collection in order to increase administrative efficiency and avoid future financial problems. Additional funds from the federal investment package should be used wisely to overcome the challenges and improve financial flexibility.

Wallmann's warnings and suggestions appear all the more urgent against the background of the current crisis in the financial sector, especially when one takes into account the upcoming challenges in the areas of digitalization and public administration. In the spirit of responsible financial policy, it is now time to respond.

For more information, please refer to the reporting by Time online and Hesse show be referred.