Several German states are bracing for substantial tax revenue shortfalls in the coming years, requiring strategic budget adjustments and fiscal discipline. Bremen anticipates a shortfall of 47 million euros in 2026, increasing to 50 million euros by 2027. Finance Senator Fecker emphasizes the need for budget discipline and calls on the federal government to establish a legal framework for an infrastructure special fund.
Thuringia also foresees reduced tax revenues, with municipal income expected to fall by 101 million euros this year and further declines projected for the following years. The state's government plans to partially offset these losses and engage with local associations to navigate the challenges.
The Saarland predicts a tax revenue gap of 110 million euros over the next two years, driven by lower-than-expected income. To counter these declines, financial priorities must be set. Despite these challenges, a single windfall from inheritance tax in 2025 is anticipated to provide temporary relief.
To address these fiscal pressures, Bremen plans to slightly increase its bed tax from 2026, aiming for an additional 1 million euros annually. These measures reflect broader efforts to manage financial expectations amidst fluctuating economic conditions.
