Baden-Württemberg has significant losses in tax revenue until 2023

Baden-Württemberg has significant losses in tax revenue until 2023

falling tax revenue in Baden-Württemberg are worried

According to the autumn tax assessment, the tax revenue of the state of Baden-Württemberg in 2023. According to the forecast of October tax estimate, the country has already taken up 544 million euros less tax by the end of September. This has consequences for the country's household and could lead to financial restrictions.

The October tax estimate 2022 formed the basis for the state's current double budget. The lower tax revenue means that the country must generate additional income in the remaining months of this year to achieve at least the estimated result of minus 182 million euros.

For the next year, the tax assessment provides for increasing income of 600 million euros compared to the budget approach. However, these forecast additional income is compensated for by the increasing expenditure due to inflation. The country will therefore have no financial scope for additional expenses.

Finance Minister Dr. Danyal Bayaz emphasizes that tax estimate reflects a new financial policy reality. Although there is minimal growth in the tax revenue, this is consumed by the high inflation. Thanks to a foresighting financial policy, the country was able to provide and collect these loads. Nevertheless, it is made clear that the times of money blessing are over ever increasing tax revenue and there will be no scope for additional expenses in the foreseeable future.

Compared to the 2022 October tax assessment, the municipalities can expect additional income of around 887 million euros this year. Additional revenue of 554 million euros will be forecast for next year. Nevertheless, there are financial challenges here too. The state's medium -term financial planning shows a structural coverage gap of 2.8 billion euros for 2025 and 2.5 billion euros for 2026. This gap is expected to be further enlarged by inflation and collective bargaining in the public service.

The sunken tax revenues in Baden-Württemberg are reason to worry. It becomes clear that the country is confronted with financial restrictions and a new financial policy reality. Inflation and increasing expenses require a forward -looking and careful financial policy to cope with these challenges.