Hesse is grappling with a financial crisis that necessitates significant budgetary cuts. The state government is postponing salary increases for civil servants while also withdrawing 500 million euros from reserves and incurring new debts of 670 million euros.
Despite these measures, Hesse plans to invest 3.3 billion euros in critical areas such as education, internal security, and justice. The projected tax revenue for 2025 is lower than expected, leading to a decision to leave one-third of vacant positions unfilled, except in essential sectors.
The state parliament will discuss the draft budget on December 10, with a final vote anticipated in March. The fiscal strategy aims to balance a total expenditure of 38 billion euros against anticipated revenues of around 36.8 billion euros, while also addressing the impact of the recent census on tax income.
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