Dresden (dpa/sn) - Saxony is making municipal budgetary law easier for municipalities because of the situation on the energy market. The Ministry of the Interior announced on Thursday that this would affect far-reaching simplifications in regulations. "The current energy crisis with unprecedented price increases is having a significant impact on the budgetary situation in Saxony's municipalities," said Interior Minister Armin Schuster (CDU). The municipalities are therefore supported by more flexibility in budgetary activities and by reducing administrative requirements.
Schuster also assumed that this would have a significant impact on local government budgets in the coming years. The price increases in all areas would lead to additional expenditure, which could not be fully compensated by consistent savings measures. "In addition, slumps in tax revenue are to be expected, as well as lower income from municipal companies that could previously be used to finance municipal tasks." In order for the municipalities to be able to fulfill their tasks in this special situation, simplifications in budgetary law are needed.
Specifically, the approval requirement for exceeding the maximum amount of cash advances no longer applies. Supervisory authorities only have to be informed. Payments for necessary costs in connection with the energy crisis can also be made if this results in a significant shortfall. The obligation to draw up a supplementary statute does not apply. The earnings budget does not have to be balanced. In fact, there is no obligation to impose budget freezes. "We can only meet the challenges of the energy crisis if we stand together," said Schuster.
