From Hildburg Bruns
Go for the reserves! Berlin is killing its piggy bank in order to be able to realize all the black and red plans for 2024/2025.
It’s about billions in reserves from the pandemic period, which are now being released. Governing Mayor Kai Wegner (50, CDU) defends this course: “It would be wrong to proceed with a cut budget. We have to invest in the police, day-care centers and schools. We make future investments.”
This is how expenditure increases (2023: 37.7 billion euros):
► 2024 to 38.6 billion euros
► 2025 to 39.8 billion euros
In contrast, there is only moderate growth in income (2023: 35.1 billion euros):
► Finance Senator Stefan Evers (43, CDU) expects 35.8 billion euros for 2024
► For 2025 he plans 37.3 billion euros
Presented the draft budget for 2024/2025 on Tuesday: Finance Senator Stefan Evers, Governor Kai Wegner, Economics Senator Franziska Giffey (from left) Photo: DAVIDS/Tom Maelsa
In order to finance the gaps between income and expenditure, the reserves are used up. “It’s more of an election campaign budget than serious long-term financial policy,” said Green Party leader Werner Graf (43). “Reserves can only be liquidated once – what’s gone is gone,” warns financial expert Kristin Brinker (51, AfD).
Alexander Kraus (52) from the Taxpayers’ Association criticized: “The double budget only shows part of the truth. With the announced special fund ‘Climate Protection, Resilience and Transformation’, debts will be taken on by the country bypassing the debt brake.”
In fact, the CDU/SPD coalition wants to take out loans for a special fund of five billion euros outside of the normal double budget in order to finance measures that save the climate killer gas CO₂.
Finance Senator Evers, who wants to increase the public service by 2,275 jobs in the next two years, warns with a view to the future: “In these years we must also initiate the consolidation path.” By this he means: The future will also bring tough austerity measures .
That’s what the senators are planning
Education, more investment in the police and fire brigade, a strong economy and more social security – the priorities for 2024/2025. Examples:
► Interior Senator Iris Spranger (61, SPD) has e.g. 30 million euros earmarked for the first construction phase of the Friedrich-Ludwig-Jahn-Sportpark +++ Fire brigade and police get nationwide body cams and vehicle cameras (5.7 million) +++ more tasers (700,000 euros) +++ four fire stations build/renovate.
► Economics Senator Franziska Giffey (45, SPD) supports women as founders (7 million euros) +++ Triple solar funding (18.5 million) +++ Clean funds for the BSR to up to 140 million euros (2025) e.g. for illegal bulky waste, more park cleaning.
Building Senator Christian Gaebler (58, SPD) increases the subsidies for every 5,000 social housing units to 1.5 billion euros/year – middle incomes will also benefit from the new WBS.
► Justice and Consumer Protection Senator Felor Badenberg (48, non-party) wants 20 new prosecutors to fight the OC or skim off the clan’s assets +++ systematic expansion of pigeon lofts (400,000 euros).
► Berlin’s Governing Mayor Kai Wegner (50, CDU) increases digitization funds by EUR 43 million +++ In 2025, cinema funding of EUR 5 million will be introduced +++ EUR 8 million as seed capital for the planned House of Games.
► Transport Senator Manja Schreiner (45, CDU) builds and plans cycle paths for 59 million euros +++ 66 million in green (including Spreepark, Tegeler Stadtheide, Britzer Garten).
► Education Senator Katharina Günther-Wünsch (40, CDU) is investing three billion euros in school construction and renovation, as well as 260 million in digitization +++ 76 million euros for the expansion of daycare places.
► Social Senator Cansel Kiziltepe (47, SPD) continues to maintain the two 24/7 accommodations for homeless people financed by the EU +++ 220 integration guides for new Berliners with a migration background +++ Expansion of women’s centers.
► Health Senator Ina Czyborra (57, SPD) increases the financing of the eleven state universities by 5 percent to 3.5 billion euros +++ fund for nursing training +++ renovation of hospital for forensic treatment.
Account with risks! That could get expensive
RISK! The budget is a calculation with many unknowns. BZ says what surprises are possible.
► INTEREST CHARGES: Berlin’s mountain of debt (around 66 billion euros) is becoming more and more expensive – almost 1.5 billion euros in interest are calculated for 2025 (chart). The interest rate grew within a year from –0.3 to currently 2.3 percent.
►CENSUS: The results of the last census are announced in March. In the case of fewer officially registered residents, this could mean that Berlin will have to repay up to 600 million euros in compensation money from the other federal states in 2024 – and then receive up to 300 million euros less a year.
►VERDICT: The Federal Constitutional Court will decide on civil servants’ salaries for the police and fire brigade – a risk of up to 1.4 billion euros!
►REFUGEES: The cost of accommodation varies between 711 million and 1.2 billion euros. It is not yet clear how much the federal government will pay for it. Finance Senator Stefan Evers (43, CDU): “The federal government is sneaking away on quiet soles.”
►OFFICER: The CDU/SPD want to adjust the salary of civil servants in Berlin to the basic level of the federal government so that the staff is not poached. Costs at least 133 million euros in 2024/2025, if pensioners also benefit, 219 million euros.
►BUILDING-COSTS: Since January 2022, construction costs have risen by 84 percent in the first quarter of the current year.
►PROPERTY TRANSFER TAX: This source of income is dwindling due to the decline in real estate sales. From January 2022 to April 2023, a drop of 51 percent.