Overview
- A University of Leipzig analysis presented by the Sächsischer Städte‑ und Gemeindetag on January 8 reports a €836 million municipal deficit for 2024 and €1.1 billion by September 2025.
- Roughly half of Saxony’s municipalities now run annual deficits, and about one‑third cannot service loans or fund investments from operating revenues.
- Social expenditure surpassed €1 billion in 2025, with 78% spent on support for people with disabilities, and the Kommunaler Sozialverband levy has increased by more than 200% since 1996.
- State allocations to municipalities lag other eastern states by about €600 per resident compared with Mecklenburg‑Vorpommern, while municipalities carry an above‑average share of public tasks.
- The SSG and report authors call for higher, rule‑bound co‑financing of Kita and social spending plus relief from mandated tasks, with final 2025 accounts still to be reconciled.