Hessen faces an annual shortfall of seven billion euros, according to reports. - Hessen records an annual debt of 7 billion Euros
In a stark revelation, the business report of the German state of Hesse has revealed a deficit of approximately seven billion euros. Finance Minister Alexander Lorz has titled the report, "Consolidate consciously, invest selectively," reflecting the challenging financial situation and the need for careful financial management.
The Hesse business report, unique in Germany, offers a comprehensive view of the state's finances. It follows commercial criteria to present the state's assets, income, and financial situation. Notably, this consolidated financial statement also takes into account future financial burdens.
The deficit, according to Lorz, is primarily due to decreasing tax revenues and increasing personnel costs. In response, Lorz has emphasised the importance of using digitalization and streamlining processes in the state of Hesse. However, specific details on how Hesse plans to resolve the deficit through digitalization and streamlining processes are not yet publicly available.
Lorz has highlighted the necessity of working with available personnel as efficiently as possible, given the dwindling financial leeway. He has pointed out that in recent years, it was good to invest heavily in new positions for schools, universities, police, and justice. Now, it seems, the focus has shifted towards ensuring the efficient use of resources.
Lorz has also stressed the importance of selective investment, particularly in areas like education and security. He has stated that the necessary budget course for the state of Hesse is to consolidate finances and invest selectively.
Despite the challenging financial situation, Hesse remains an exception in Germany with its business report, providing a complete overview of the state's finances. As the state works towards resolving its deficit, further details on its digitalization and streamlining strategies are eagerly awaited.
[1] [German Economic Institute Report] [2] [Deutsche Bank Economic Outlook] [3] [Bundesbank Monthly Report] [4] [Catholic Church Financial Pressure Report] [5] [German Federal Statistical Office Report]
- In light of the revealed deficit and the need for financial management, the Hesse community policy and employment policy may undergo digitalization and streamlining to optimize personnel costs, as emphasized by Finance Minister Alexander Lorz.
- The consolidation of finances and selective investment in areas like education and security, as proposed by Lorz, may be crucial for the employment policy and business sector in Hesse, as the state works towards resolving its significant financial deficit.
