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Senator Stefan Evers
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Berlin's Senator for Finance Stefan Evers has promised more restraint in financial planning in the coming years.
"With the double budget for the next year and the year after, we are once again meeting the challenges of our time resolutely and with all our strength," the CDU politician announced on Tuesday after the Senate meeting. "We will offer relief to people in the crisis, invest in the future and ensure that Berlin is well prepared. However, it is also clear that Berlin must function better in the future with less money."
Evers believes this is realistic: "It's doable if we invest wisely, budget responsibly and set clear priorities." Everyone would have to pull together for this effort. Step by step, Berlin is returning to normal budgetary mode. According to the Senate Deparment for Finance's assessment, inflation alone is causing higher financing requirements while public services remain unchanged. The development of interest rates is also leading to a noticeable additional financial burden. The economy, the labor market and the budget have proved resilient in recent years of crisis. However, the fiscal policy framework has deteriorated.
On Tuesday, the Senate adopted the financial planning for the years 2023 to 2027. According to the Senate Department for Finance, the goal is to return to a normalization of the spending volume with the double budget in 2026/27. Currently, the state parliament is discussing the 2024/2025 double budget, which is expected to be passed in the House of Representatives by the end of the year. The investment planning for the coming years was decided as well. The share of investments in the state budget is reportedly 9.5 percent on average. The largest single share of the investment plan until 2027 is school construction with around four billion euros.