Lower Saxony in debt chaos: 2,223 euros per capita and growing cash crisis!

Lower Saxony in debt chaos: 2,223 euros per capita and growing cash crisis!

The financial health of the municipalities in Lower Saxony also looks bleak in 2025. According to current figures, the debt level amounts to around 17.8 billion euros, which means a per capita debt of 2,223 euros. Compared to the previous year, this is an increase of around a fifth, as sat1regional.de reports. This worrying development poses major challenges for many cities and municipalities, especially considering that many municipalities are reaching their financial limits.

The year 2024 also brought no relief. The municipalities in Lower Saxony recorded an increase in tax revenue of 2.3%, which now stands at 13,027 million euros. However, this positive aspect cannot console the dramatic financing deficit, which increased by 189.8% to 3,992 million euros, according to Statistics Lower Saxony shows. Municipal spending also increased by 9.4%, while income only increased by 1.9%. This disproportion inevitably leads to gaps in budgets.

Who are the losers and winners?

Cities such as Laatzen, Pattensen and Seelze are particularly affected by the debt, all of which are in debt of more than 5,000 euros per capita. On the other hand, however, there are also bright spots: In Lower Saxony, ten municipalities are now debt-free, including the cities of Burgwedel and Verden as well as some municipalities such as Scheeßel and Dötlingen, as [dieniedersachsen.de](https://www.dien Niedersachsen.de/politik/kommunen-in-niedersachsen-weiterhin-stark-verkreditet-2920275) reports. However, the municipality of Moormerland has lost its debt-free status, which further illustrates the problem.

There are also concerns from experts. Jan Vermöhlen from the Taxpayers' Association warns that many municipalities are financially overwhelmed and calls for fundamental reforms in municipal financing. Many cities have already increased property and business taxes, and a wave of additional increases is expected in 2024. A cycle that could place a heavy burden on citizens.

A look into the future

The state of Lower Saxony and the federal government have promised support for the municipalities in order to cushion the economic burden, but worries remain. Protracted deficits and rising spending must be urgently addressed to ensure sustainable financial stability. This is the only way that municipalities can once again develop a good hand in planning their future.

For citizens, this means that the development of municipal finances should be closely monitored in the coming years. The challenges are great, but the solutions could potentially lie in joint efforts by local, state and federal governments.