Rockin' the Roost: Saxony's State Audit Office Stirs Up Changes for State Budget
State Auditor pushes for budget transformation within Saxony's administration - Auditors in Saxony petition for a comprehensive revision of the state's financial management system.
You know what they say, when in Saxony, always expect the unexpected! That's definitely true when it comes to their state budget, according to the State Audit Office. Big boss Jens Michel dropped a bombshell at the unveiling of their annual report: "It's high time for a budget overhaul, people." And he means business.
Michel's been giving Saxony's finances a second look, and it seems there's more than meets the eye. With increased scrutiny on public funds, he's sounding the alarm. "We've been dancing the same old shuffle for too long. It's time for some fresh moves."
Despite a record-breaking budget for 2025/2026, Michel's puzzled. "Something ain't adding up here." It's clear, Saxony's got some homework to do. Status quo ain't gonna cut it anymore.
In the report, auditors dug into the 2023 budget. revenues and expenses totaled around 24.3 billion euros, up over 11 percent from the previous year. But there was a funding gap of about 1.1 billion euros. The Ministry of Finance harnessed the budget balance reserve to make up for the shortfall. State Audit Office isn't happy about that. They think there could've been better options.
Saxony's facing an even larger deficit dip for the mega budget of 2025/2026. reserves have been exhausted. Christian Piwarz, Finance Minister and CDU club member, refers to the budget as a 'transition' one. He's got his eyes on the budget for 2027/2028, when reserve cushion will be K-O. So, the State Audit Office is buzzing about the need for a turnaround.
Take a gander at the list of spending missteps in the anniversary report. For example, the expenses for teacher overtime pay have been on a steady climb - from 600,000 euros in 2016 to a colossal 9.8 million euros in 2022. Yet, teacher absenteeism rates have skyrocketed by 68 percent. The State Audit Office is demanding some efficiency improvements, such as a uniform time recording system for teachers.
Cryptocurrency gains are also getting tighter scrutiny. In 2021, Saxony made around 20 million euros from taxes on crypto profits. One case netted 13 million euros alone. Skadi Stinshoff, an auditor, thinks the hidden figures are probably massive. The State Audit Office recommends beefing up crypto asset surveillance and investing in an evaluation program.
Some serious criticism has been launched at the financing of universities. While the student count dropped by 8 percent and graduates by 13 percent between 2013 to 2022, Saxony dished out more than the rest of Germany when it comes to basic financing and staffing for universities. The State Audit Office says criteria for doling out funds to individual universities should be developed.
The state of Saxon roads has been under the lens too. "The state of Saxon roads has been shady for twenty years," said Stefan Rix, Vice-President of the State Audit Office. Only a third of the necessary road maintenance measures get ticked off. Funds meant for maintenance are being diverted elsewhere.
Michel also called out the hefty personnel costs. They've ballooned from 5.2 billion euros in 2022/2023 to 5.4 billion euros. The planned reduction of around 370 out of almost 96,000 positions is just a "drop in the ocean," according to Michel. "I think we can do better than that."
- State Audit Office
- Saxony
- Budget Overhaul
- Government Spending
- Fiscal Reform
- Dresden
- Financial Stability
- Economic Growth
- Infrastructure Investment
- Innovation Support
- Cross-border Gas Tax Elimination
- The State Audit Office in Saxony is advocating for a comprehensive budget overhaul, as they believe current spending habits, particularly in areas like government spending, need to be re-examined to ensure fiscal stability and economic growth.
- With the mega budget for 2025/2026 showing an even larger deficit dip, the State Audit Office is pushing for innovation support and infrastructure investment, emphasizing the need for efficiency improvements in sectors like the financing of universities and the maintenance of roads.
