Municipalities receive more money from the state

March 25, 2022 – dpa news

The state parliament of Saxony-Anhalt passed an amendment to the Financial Equalization Act on Friday. This means that the districts, cities and municipalities will each receive 1.735 billion euros from the state in 2022 and 2023 – that’s 107 million euros more than last time. “This is a good day for our municipalities,” said Guido Kosmehl, parliamentary director of the FDP parliamentary group. SPD financial politician Andreas Schmidt said that the country was saying goodbye to financial equalization based on the cash position. With the decision, the black-red-yellow alliance has implemented a central project from the coalition agreement.

Fiscal equalization is then to be fundamentally revised over the next few years. A report commissioned by Finance Minister Michael Richter (CDU) is intended to clarify whether the distribution of state funds to the individual districts, cities and municipalities is fair. The results could be available by the end of the year.