Overview
- Saxony’s local authorities ended 2025 with a cash shortfall of €1,036,388,000, exceeding the 2024 deficit by more than 50%.
- Higher income-tax and VAT shares could not offset a €181.9 million drop in trade-tax receipts, leaving overall tax revenue down €40.7 million year over year.
- Personnel expenses rose by €160.7 million and social benefits by €156.4 million, costs the association says municipalities can scarcely control.
- Own municipal investment spending fell by €277.1 million compared with 2024, with more projects deferred and infrastructure upkeep at risk.
- The SSG calls the result a “dramatic negative record,” warns of shrinking ability to act, and demands greater state transfers, noting Saxony trails other East German states in allocations as cities and towns report the deepest gaps while counties benefit from higher levies.