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After two weeks: country lifts controversial budget freeze

2023-05-30T12:01:12.962Z

Highlights: Schleswig-Holstein's black-green state government has already lifted its controversial budget freeze after two weeks. Finance Minister Monika Heinold's actions continue to raise questions. In mid-May, Heinold had surprisingly imposed a temporary budget freeze "in close cooperation" with Prime Minister Daniel Günther (CDU) This was followed by massive criticism from the opposition and associations. The cabinet is now limiting the personnel budgets of the ministries, but Heinold insists this is not tantamount to a hiring ban.



Schleswig-Holstein's Finance Minister Monika Heinold (Greens). © André Klohn/dpa

Black-Green saves and lifts the budget freeze. For 2023, there was a funding gap of 144 million euros. Finance Minister Heinold's actions continue to raise questions.

Kiel - Schleswig-Holstein's black-green state government has already lifted its controversial budget freeze after two weeks. On Tuesday, the cabinet agreed on savings. "In the end, the cash register has to be right," said Finance Minister Monika Heinold (Greens) in the Finance Committee of the state parliament. "We are realigning the budget in the face of declining revenues and rising costs."

In mid-May, Heinold had surprisingly imposed a temporary budget freeze "in close cooperation" with Prime Minister Daniel Günther (CDU). This was followed by massive criticism from the opposition and associations. For two hours on Tuesday, Heinold answered questions from the Finance Committee. For the opposition, questions remained unanswered. "She has not been able to explain what the budget freeze was supposed to do," said SPD parliamentary group leader Thomas Losse-Müller.

Heinold repeatedly described the procedure as the right step. "The claim that the state government has not made the country's financial situation transparent is simply false." According to their information, the need for action due to falling tax revenues and expected tariff-related cost increases for the current year was 144 million euros. For 2024, the gaping gap is still larger.

The cabinet is now limiting the personnel budgets of the ministries. Heinold emphasized that this would not be tantamount to a hiring ban. With the limit, the minister wants to reserve 50 million for the upcoming collective bargaining agreement. The coalition is saving a further 94 million euros, among other things through cuts.

In general, the black-green coalition is cancelling business trips, the purchase of equipment, events, public relations, expert opinions, vehicles and training and further education. The savings targets go across all areas: In the area of regional planning, for example, grants to municipalities and associations of municipalities will fall by a third to less than 1.5 million euros. For fire stations, there are only 10.8 million euros instead of 5 million.

For a nationwide scientific study on extremist and racist attitudes within the police, only 100,000 euros are available instead of 20,000. Subsidies for accommodation costs for trainees will be reduced from 500,000 to 100,000 euros. There is also less money for private vocational schools and the integration of refugees at universities. Innovation aid for shipyards is declining compared to the plans, as are funds for nursing training, animal shelters, wolf management, agricultural investments, drought aid, sports and urban development funding and mobile slaughterhouses.

Opposition leader Losse-Müller suspects that the aim of the ban was to discipline the ministers. He asked several times about concrete savings due to the two-week budget freeze, but did not get a precise answer. The budget freeze is an obvious mistake. "She (Heinold - editor's note) did not have the size to admit that," said the SPD parliamentary group leader. In addition, the ban did not bring about any savings at all. "It was just a disastrous effect."

Heinold emphasized the country's tight financial situation. "In addition to reduced tax revenues, rising interest rates and inflation-related cost increases, the political decisions of the federal government are also having a noticeable impact on the country's financial situation." As examples, she cited the housing benefit reform, the Deutschlandticket, the citizen's allowance or the elimination of funds for daycare language support.

The President of the State Court of Auditors, Gaby Schäfer, had already criticized the procedure in the past. "And I haven't heard any arguments in favor of the budget freeze today either."

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Criticism of Heinold also came from the FDP. Its financial politician Annabell Krämer spoke of a short-circuited panic action. "I still don't get it." The ban may even result in additional costs in the aftermath. Her SPD colleague Beate Raudies raised the question of why all the turmoil in the country was necessary.

CDU finance politician Ole Plambeck defended the coalition's actions. The government had to respond to a relatively large financial gap. The ban was correct. According to Green Party leader Lasse Petersdotter, no damage has been caused by the budget freeze. After all, it only worked for nine working days. In response to a question from committee chairman Lars Harms (SSW) as to whether the government would rule out taking such a step again in 2023, Heinold said: "As finance minister, I can logically never rule out a budget freeze." dpa

Source: merkur

All news articles on 2023-05-30

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