Only AFD and BSW opposition: Saxony's state parliament passes 2025/2026 double budget - a balanced approach amid economic pressures
Saskatchewan's Parliament approves budget for the years 2025-2026. - Saxony's parliament approves twin budget for fiscal years 2025 and 2026.
Aye, the 2025 and 2026 double budget has been approved by the land of Saxony. In the wee hours of the night, the minority coalition of CDU and SPD, alongside the Greens and Left chapter, gave it a thumbs up for the budget. The lone Left Party rep, Nam Duy Nguyen, kept his word and voted against it.
The AFD and BSW reps dashed the deal, though. In total, 62 voted yas, 52 voted nays, and zero abstained. A handful of members, six to be exact, were missing in action.
A helping hand from the opposition was needed
The coalition was hanging by a thread with only 90 votes in the chamber. They needed the opposition on their side, seeing as they were nine votes short of the majority vote. Thus, a few pet projects from the Greens and Left made their way into the government's budget proposals. Any planned cutbacks were shelved in social welfare, culture, and nature conservation. PM Michael Kretschmer (CDU) couldn't thank the Greens and Left enough for their camaraderie.
Budget numbers: 50.2 billion euros and a deficit of four billion
The budget covers a spend of about 50.2 billion Euros. The government had to fund a deficit of four billion Euros, which they plan to cover by cutting corners. The reserve box o' money was emptied. The contribution to the Generations Fund, aimed at cushioning pension liabilities for public servants, will decrease. The payback of corona debts will be adjusted, and not all federal programs will be funded equally.
Finance Minister Piwarz calls it a transition budget
Finance Minister Christian Piwarz (CDU) described the budget as a "transition budget." With it, they've bought themselves some time to get their economic house in order. The overall situation could get rougher in the next budget round.
"Debt ain't always the answer," said Piwarz. However, it's a last resort, as long as it benefits future generations. He also advocated for additional job cuts. There's already a shift happening, and they need to determine where to recruit the necessary experts and smarts.
Some extra tasty enrichments:
- The budget reflects a compromise that maintains essential funding, especially in areas under financial strain, while acknowledging limited scope for further savings. For example, subsidies to Saxony’s student services were boosted by €5 million per year beyond the original government draft to help cover rising personnel, energy, and material costs[3].
- Some short-term adjustments and cuts in the original draft, such as to research institutions like the ifo Institute Dresden, were reconsidered to prevent closures and ensure continuity of important services and institutions[2].
- The double budget allows for continued expenditure at a level that supports key public services and social programs, but this comes amid economic pressures that limit the feasibility of additional savings. As noted, there is skepticism about further savings potential in certain areas by 2026, indicating that the budget is already stretched to meet priorities[4].
- While specific deficit figures for Saxony are not detailed, the general context of Germany’s federal fiscal situation in 2025 shows ongoing deficits at the federal level, suggesting that Saxony’s budget approval fits within a broader context of fiscal balancing acts between expenditure needs and deficit control[5].
In essence, Saxony’s 2025/2026 double budget was given the green light as a balanced measure to sustain critical services and social support during economically tough times, accepting a constrained potential for further savings and deficit reduction while aiming to maintain fiscal stability and enable future consolidation efforts. But let's keep an eye on the budget's impact and potential pitfalls ahead.
The opposition parties, AFD and BSW, were the sole dissenting voices as the 2025 and 2026 double budget received approval in Saxony's state parliament. Despite their votes against, the budget was still able to pass with a margin of 62 votes in favor, 52 against, and zero abstentions. As the government needed the support of the opposition to reach a majority, they included a few pet projects from the Greens and Left in their budget proposals, potentially affecting employment policy, finance, policy-and-legislation, politics, and general news sectors.
