Thuringian budget in crisis: austerity and new funding strategy!

Thuringian budget in crisis: austerity and new funding strategy!

Thuringia faces significant challenges in the area of ​​budget planning. In view of a forecast deficit of over one billion euros for 2026 and 2027, the state government is planning extensive savings in the state budget, which will also lead to a stricter review of the existing funding programs. Finance Minister Katja Wolf emphasizes that ineffective spending is unsustainable and calls for regular evaluation of the programs to ensure that they achieve their goals. Programs that cannot demonstrate demonstrable success should either be adjusted or discontinued completely, the Süddeutsche Zeitung reported.

In this context, municipalities are also expressing concern about financial pressure. The Thuringian municipalities have reported an additional financial requirement of 273 million euros this year, particularly in the social sector and municipal infrastructure. Interior Minister Georg Maier and other political decision-makers have therefore announced the establishment of a budget structure commission that will examine potential savings and increases in efficiency. Maier made it clear that “the fat years are over” and priorities must now be set.

Focus on funding programs

A critical examination of the federal and EU funding programs in which Thuringia is involved is considered necessary. Wolf demanded that the funding should only be co-financed with state funds if it corresponds to the political priorities and goals of a sustainable financial policy. However, the funds already flowing are not insignificant: in 2024, Thuringia received 71.5 million euros for the digitization of schools, while almost 53 million euros were awarded to private companies as part of GRW funding.

Some of the central funding also went to the municipalities, which received around 41.6 million euros for infrastructure investments last year. However, the complex structure of the programs meant that the state's own share of these funds could not be determined in the short term. In addition, around 53.4 million euros were invested in the expansion of broadband and fiber optic networks in 2024, and almost 29 million euros were made available for construction work at schools and school sports halls.

Urgency of fiscal consolidation

CDU parliamentary group leader Andreas Bühl warned urgently of the consequences of an impending deficit of more than one billion euros from 2026 if there is no budget consolidation. Various measures to increase efficiency are being discussed in the political discussion. This includes not only streamlining the funding programs, but also a possible extension of loan repayment periods and the implementation of digitalization measures.

The state government will have to make the necessary savings in the coming double budget for 2026/2027 in order to meet the challenges of a rapidly changing financial environment. The coming months and years will be crucial in determining how Thuringia can overcome these financial hurdles.