Berlin Senate saves millions: budget reallocation successful

Berlin Senate saves millions: budget reallocation successful

The Berlin Senate is facing a decisive change in the planned budget cuts. An agreement between the coalition leaders of the CDU and SPD has stipulated that the Senate administrations only have to save two percent of their budget volume this year, compared to the previously planned 5.9 percent. This leads to a reduction in total savings from 1.75 billion euros to 557 million euros. Governing Mayor Kai Wegner (CDU) and the parliamentary group leaders of the CDU and SPD, Dirk Stettner and Raed Saleh, announced these new developments.

The discovery of unused funds that burden the budget but cannot be used has led to this savings potential. This includes overestimated personnel costs for unfilled positions as well as overestimated amounts for local public transport, housing and school construction. A planned loan package from the state-owned investment bank for housing construction, which has not been fully utilized, also represents a source of possible cuts.

The new budget is seen as an honest and transparent step to put Berlin's finances on a solid footing. The savings of 557 million euros must be implemented by all Senate administrations, although according to those responsible this can be done without any problems. The administrations are expected to present their corresponding cuts measures by July 1st.

A look at the budget also illustrates the ongoing financial burdens caused by the corona pandemic. Despite the measures taken in the double budget for 2024/2025 with record expenditure of 39.3 billion euros for 2024 and 40.5 billion euros for 2025, the goal of black and red is to restore financial stability in the medium term. These challenges highlight the need for economic stimulus at the federal level to strengthen public infrastructure and prepare the city of Berlin for future crises.