State of North Rhine-Westphalia voices disapproval over fresh debt inclusion in the 2026 budget proposal
North Rhine-Westphalia Draft Budget for 2026: Addressing Debt and Personnel Expenditure
The state of North Rhine-Westphalia has unveiled its draft budget for 2026, aiming to tackle the rising personnel expenditure and prevent a massive new debt. The budget, to be submitted to the state parliament on September 17, is expected to see the state take on new debts of 4.5 billion euros.
Rik Steinheuer, the chairman of the Association of Taxpayers North Rhine-Westphalia (BdSt NRW), has expressed concerns about the new debts. Steinheuer, who heads an independent and non-profit organization based in Düsseldorf, advocates for fair taxation, reduction of state debt, stopping wasteful public spending, and reducing bureaucracy, has warned that these loans will further increase the interest burden and restrict the room for maneuver of future generations.
In an effort to reduce expenditure, personnel is being cut in the ministerial administration, and funding measures are being reduced. The state plans to save 3.4 billion euros in the draft budget for 2026. Abolishing numerous municipal funding programs and strengthening prioritization could save significant amounts.
The state also plans to improve the revenue side by using the budget accompaniment law to withdraw almost 3 billion euros from the pension fund. Billions of euros from so-called self-managed funds are being returned to the budget. The Association of Taxpayers North Rhine-Westphalia (BdSt NRW) has praised the state government for addressing some of their demands in the draft budget for 2026.
The draft budget for 2026 focuses on education, internal security, and infrastructure investments. The use of AI and automation could be expanded to save costs. The Association of Taxpayers North Rhine-Westphalia (BdSt NRW) calls on the state parliament to sharpen its scrutiny during the parliamentary budget debate.
Steinheuer criticizes the use of the pension fund to plug budget holes. He warns that these loans will increase the interest burden and restrict the room for maneuver of future generations. The Association of Taxpayers North Rhine-Westphalia (BdSt NRW) has expressed concerns about the new debts and has urged the state parliament to exercise caution in its consideration of the draft budget.
The draft budget was announced on September 16, 2025, in Düsseldorf. Personnel expenditure is expected to increase by around 2.8 billion euros compared to 2025, more than any other expenditure block. The state government plans to take on new debts of 4.5 billion euros in the draft budget for 2026.
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