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State parliament determines emergency situation: more debts possible

The Saarland state parliament has officially identified an emergency due to the corona pandemic. In doing so, at the beginning of a two-day debate on the country’s double budget for the years 2021 and 2022, he paved the way for higher debt. Due to the emergency situation, the state parliament can now resolve a budget that goes beyond the debt brake of the Budget Stabilization Act.

Spending in 2021 and 2022 will exceed the five billion mark for the first time at 5.0 and 5.1 billion euros, respectively. In the two previous years, the estimated budget volume was 4.6 and 4.8 billion euros. The draft budget provides for cyclical new debts of 85 and 62 million euros for the next two years. In addition, because of the corona pandemic, there are additional new loans for the state’s expenses from the so-called pandemic special fund. They amount to 409 and 296 million euros in 2021 and 2022.

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