In January 2023, citizen income should come. However, the Federal Court of Auditors sees room for improvement in the reform. The high asset exemption limit could lead to massive abuse of the system. The authority is also critical of the burden on taxpayers.
According to a media report, the Federal Court of Auditors criticizes the high asset exemption limits in the planned citizen income and the additional costs for taxpayers. The auditors warned, among other things, of massive false incentives that could lead to abuse, the newspaper "Bild" reported, citing an opinion from the Court of Auditors.
"For example, a married couple with two children could receive citizens' benefit despite 150,000 euros in savings and cash assets, additional assets that serve to provide for old age, two motor vehicles and owner-occupied home ownership," the newspaper quoted from the report. The regulation means that "the federal budget will be burdened for two years with the benefits of people who can be assumed to have sufficient personal capacity."
The Federal Court of Auditors also considers a waiting period of two years, during which the living space is not checked and assets not counted, to be too long, reports the "Handelsblatt". A "significantly shorter waiting period" is "sufficient", warned an examiner. It would be more advantageous to limit the regulation in the law and to evaluate it again before extending it.
The Court of Auditors also criticizes the fact that the draft law does not require applicants to list the existing assets. "With the waiver of any information, the planned change opens up opportunities for take-away and abuse." In addition, high extra costs are criticized. The auditors then put the additional burden on taxpayers at five billion euros in the coming year alone.
Citizens' income is to replace the Hartz IV system from January. In doing so, the traffic light coalition wants to fulfill one of its central socio-political promises. "The introduction of citizen's income on January 1 will be one of the biggest social reforms in 20 years," said Federal Labor Minister Hubertus Heil at the first consultation on the draft law.
