Munich increasingly in debt due to Corona?

Because of that - trade tax is bubbling up like never before

Created: 12/24/2021Updated: 12/24/2021, 8:11 AM

From: Klaus Vick

The city of Munich can reduce debts - because the trade tax has so far only bubbled in 2021.

© Frank Hoermann / SVEN SIMON / Imago

Due to the Corona crisis, the Munich city government painted a gloomy scenario on the wall at the end of 2020.

But that has now turned out to be wrong.

Munich - Contrary to expectations, the city will be able to reduce its debt level by the end of 2021.

This is evident from the information provided by the finance department.

The liabilities in November amounted to 1.33 billion euros, as of December 31, 2020 it was 1.54 billion euros.

Chamberlain Christoph Frey (SPD) predicted a possible increase in debt a good year ago in view of the Corona crisis.

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Munich with fewer debts: twice as much trade tax in 2021 as in the previous year

However, due to unexpectedly high trade tax revenues and strict austerity measures, the mountain of debt has not grown any further.

According to the finance department, around 3.3 billion euros in business tax have already flowed into the city coffers this year - a record!

That is almost double compared to 2020 (1.7 billion).

The highest level of debt so far dates back to 2005. At that time, the city's liabilities were EUR 3.41 billion.

This mountain of debt could be reduced to 636 million euros by the end of 2019.

In the coming years, however, it is likely to grow again because the city is facing massive expenditure, especially for the expansion of local public transport.

The same applies to citizens, who have recently been confronted with fare increases again.

Munich: City government is planning investments in various areas

The town hall government of Munich has also announced investments in social cohesion, digitization, climate protection and housing construction for 2022.

These are central components of the green-red policy.

In view of the high trade tax income, additional expenditure for citizen-friendly administration, education and childcare are possible.

Because of Corona, rule chaos threatens in Bavaria at Christmas.

Even Prime Minister Söder does not always have a clear view.

Columnist Flaucherfranzl writes.