Explosive increase in civil service positions and expenditure in ministries: Finance expert criticizes sharp increase and calls for hiring rules

Explosive increase in civil service positions and expenditure in ministries: Finance expert criticizes sharp increase and calls for hiring rules

According to a report by blackout-news.de,

The federal government has significantly increased the number of civil servant positions in the federal administration and especially in the ministries. Compared to the last budget year of the grand coalition under Chancellor Merkel in 2021, the number of civil servant positions has increased by 11,507 up to the current budget 2024, which corresponds to an increase of 6.3 percent. In the federal ministries the increase is even higher and amounts to 8.4 percent. This development is accompanied by sharply increasing spending on personnel, from almost 36 billion euros in 2021 to over 43 billion euros in 2024, which corresponds to an increase of more than 20 percent.

This dramatic increase in civil service positions and spending in ministries has potential impacts on the market and the financial industry. A key aspect is the financial burden on the state budget, as the costs of civil servant salaries and pensions rise. This could lead to higher taxes or a shift of funds to other areas. In addition, the shortage of skilled workers in the private sector could be exacerbated by the poaching of qualified specialists by the public sector.

The strong criticism of this increase in civil service positions and expenditure, especially in the current time of tight budgets and a shortage of skilled workers, illustrates the significance of this development. The demand for a “one-in-two-out” rule for new hires and the rejection of new civil servants in the ministries shows that such measures could relieve the burden on public budgets in the long term.

The drastic increase in civil service positions at the Federal Data Protection Commissioner and in the Ministry of Construction are examples of areas in which there is a greater concentration on expanding positions instead of the actual tasks. This imbalance could have long-term effects on the implementation of political goals in these areas.

Overall, this development highlights the need to reconsider and, if necessary, restructure the measures in question in order to ensure financial stability and the efficient use of public resources.