Hessen’s 2024 budget crisis sparks outrage over record debt plans
The Bund der Steuerzahler in Hessen, led by Joachim Papendick, has slammed the state's supplementary budget planning for 2024. The budget, which includes a substantial news deficit, has drawn criticism for its high payment amount and plans for massive new borrowing.
Even after excluding a €2 billion capital injection for the state-owned bank Helaba, the budget still faces a significant news deficit of €834 million. Papendick has criticized this, stating that the 'golden years of fiscal policy' are over and urging the government to freeze net hiring and review every state expenditure and program.
The budget plans to cover this news with fresh debt, marking a departure from the state's recent history of avoiding new debt in seven of the last eight years. This shift comes despite the state benefiting from surging tax income in recent years. Papendick has warned that the long-term financial burden of past decisions is now weighing heavily on future budgets, making consolidation a 'Herculean task' amid economic headwinds.
The Hessian branch of the Federation of German Taxpayers has criticized the state government’s supplementary budget for 2024, with Joachim Papendick, chairman of BdSt Hesse, highlighting the government's past spending increases as a major liability. The budget's high payment amount and plans for massive new borrowing have raised concerns about the state's financial future.
