Schleswig-Holstein's debt turbo: 800 million for infrastructure!

Schleswig-Holstein's debt turbo: 800 million for infrastructure!

Schleswig-Holstein faces the challenge of using its financial resources efficiently and in a targeted manner. According to a report by the State Audit Office, the state can take on up to 800 million euros in additional debt annually by easing the debt brake and creating a special federal fund. State Audit Office President Gaby Schäfer appeals to the state government to invest this money in the infrastructure of the state and municipalities. The goal is to create growth impulses for the economy in Schleswig-Holstein through targeted investments.

However, it is emphasized that the new funds are not intended to be used to close budget gaps. Instead, the focus should be on future-oriented projects. However, the current May tax estimate shows that tax revenue by 2029 will be over 600 million euros lower than originally forecast. This could increase the funding gap in the budget to around 1.2 billion euros by the end of the period.

Finance Minister plans to invest in infrastructure

Finance Minister Silke Schneider has already announced plans to invest the funds from the federal government's new financial package specifically in infrastructure. A meeting will also be organized with the municipalities to discuss the distribution of the funds. Another important point is the shortage of specialists in the education sector, which requires comprehensive reforms and financial incentives for the teaching profession. Education Minister Dorit Stenke reports initial successes in measures to support teacher training students.

Economic challenges in the deportation detention center

The report also addresses the economic problems of the Glückstadt deportation detention center, which currently only occupies 42 of 60 detention spaces. The State Audit Office recommends optimizing the structures and processes of this institution as well as renegotiating the agreement with Mecklenburg-Western Pomerania and Hamburg. Current figures show that Schleswig-Holstein only uses 26 percent of its prison space, which is considered uneconomical. This is happening against the background of a ruling by the State Constitutional Court, which declared parts of the budget for 2024 to be unconstitutional.

At the federal level, the Bundestag's Budget Committee has approved a comprehensive financial package that will enable new debts with a volume of up to one trillion euros. In order to be able to use the planned special fund of 500 billion euros, an establishing law is required. Borrowing will be expanded through several measures, including the easing of the debt brake for defense, civil defense and military aid, which means a fundamental reform of existing budget law. The Bundestag will soon vote on the debt package, while the Bundesrat must make a decisive decision.

Overall, the current financial situation both in Schleswig-Holstein and at the federal level shows how important it is to find a balance between investing in infrastructure and maintaining financial stability. The coming decisions could have far-reaching consequences for the country's economic development.