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The Federal Audit Office sees state finances in dangerous difficulties

2021-11-10T11:08:36.802Z


There is nothing left of the surpluses from previous years; instead, the corona crisis is tearing deep holes in the federal budget. The Federal Audit Office warns: The situation is already critical.


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Federal Audit Office in Bonn

Photo: Christoph Hardt / Future Image / IMAGO

The Federal Audit Office looks at the state of the German budget with great concern. "The federal finances are in a critical situation," says a report by the authority that was sent to the Bundestag on Wednesday. What is needed is "an honest cash slump, effective structural reforms and resolute priorities." This is the only way that future tasks such as climate protection and digitization can be mastered "on their own, sustainably and in a way that is appropriate for the generations."

In its inventory, the Federal Audit Office criticized the fact that budget surpluses were accumulated in the good economic years from 2014 to 2019 - but "an active stabilization strategy with sustainable measures to improve the budget structure" was largely not implemented.

"Less than two years of the corona pandemic were enough to severely weaken federal finances."

"Now it is important to turn things around as quickly as possible," warned the Federal Audit Office.

"Just waiting for better economic conditions will not be enough to make the federal budget resilient, to finally tackle the major future tasks and at the same time to save future generations from an excessive debt burden."

The courage to cut back is sorely lacking

Specifically, the Federal Audit Office demanded "a courageous criticism of expenditure with the aim of concentrating on the most pressing tasks assigned to the federal government by the Basic Law" from the next federal government.

What is also needed is a »spending moratorium, according to which, in principle, counter-financing is ensured for every new measure by ending other measures«.

In addition, social transfer benefits would have to be geared more precisely to “the really needy and weak”.

In order to improve the revenue side, the Federal Court of Auditors advised "to intensify the fight against tax fraud".

A critical review of tax subsidies and concessions "with no or insufficient economic impact or climate-damaging effects" is also important.

The Bonn authority was very clearly against the abolition of the debt brake. "The temptation of a further debt, freed from the limits of the debt rule, is not the means of choice for solving the tasks at hand," she said. Court of Audit President Kay Scheller emphasized that the debt brake had proven itself in the corona crisis and enabled aid worth billions. "Softening or even abolishing the debt rule would be the wrong way to go and capitulating to problems without even discussing solutions."

Solutions would "not lie in non-transparent secondary budgets such as funds, special-purpose vehicles or other structures, but in a courageous and clear consolidation course," explained Scheller.

The recommendations of the Court of Auditors come right into the hot phase of coalition negotiations between the SPD, the Greens and the FDP.

The question of funding is considered one of the most difficult topics in the talks.

beb / afp

Source: spiegel

All business articles on 2021-11-10

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