Greens and CDU leaders are negotiating additional spending

Created: 2022-10-29 03:31

Baden-Württemberg Prime Minister Winfried Kretschmann.

© Marijan Murat/dpa/archive image

The bottom line is that the tax estimate is positive.

But the risks posed by the crisis are great.

Now the coalition has to weigh up: how much money will be invested again and what goes into the savings stocking for bad times?

Stuttgart - The leaders of the Greens and CDU want to discuss on Saturday (2 p.m.) in the budget commission what the state should spend more money on.

All in all, the tax estimate turned out to be positive.

Now the coalition has to decide how much money to invest and how much to put into the reserve for risks and relief packages.

There is considerable pressure from the parliamentary groups and ministries to use the additional income for their projects.

However, Finance Minister Danyal Bayaz (Greens) wants to strengthen the risk buffer in the energy and inflation crisis and put more money aside.

He had called on the parliamentary groups to exercise moderation.

As the German Press Agency learned from coalition circles in Stuttgart on Friday evening, the state can expect a big tax plus this year.

The main reason for this is that the state benefits from high inflation through sales tax.

For the years 2023 and 2024, however, the assumptions are below the estimate from May.

But here the country benefits from a special effect: because the economy is slowing down and income is falling, the country also has to repay less of its high corona debt.

Things should pick up again in 2025 and 2026.

Exact figures were not yet available.

For the 2023/2024 double budget, this means that with the help of the tax plus and the previous reserves, one is able to co-finance the third relief package of the traffic light government.

Coalition circles said there was also scope to raise any additional relief in the country.

There is still a certain sum left over for additional expenditure in the double budget.

Most recently, the state government of Prime Minister Winfried Kretschmann (Greens) came under massive pressure to invest significantly more money in education.

dpa