State Auditor Criticizes Black-Green Budget Plans - Schleswig-Holstein’s €1.3 Billion Budget Crisis Deepens by 2026
Schleswig-Holstein's budget faces a grim future, with significant funding gaps looming. Despite planned savings, the state is set to fall short by around €400 million annually.
The 2026 budget already predicts a financing deficit of €921 million, which swells to €1.3 billion when factoring in the withdrawal from the pension fund and suspended transfer. Looking ahead, an average annual shortfall of nearly €1 billion is projected.
The state government plans to plug these gaps primarily by withdrawing €300 million from the pension fund and dissolving reserves. However, they must refrain from taking out planned cyclical credit lines. Even a positive October tax revenue forecast, adding €300 million in 2026, barely reduces the deficit. The coalition is struggling to meet its pledge of delivering both investment-driven and austerity-focused budgets.
Outgoing Court of Auditors President Gaby Schäfer has criticized the 2026 draft budget for lacking genuine spending cuts. Financing gaps are set to surge in the coming years, from €1 billion in 2027 to €1.7 billion by 2032.
Schleswig-Holstein's budget faces a worsening financial outlook, with substantial funding gaps expected in the coming years. The state government must implement effective measures to address these shortfalls and ensure the sustainability of its finances.
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