Overview
- Bavaria will tap substantial reserves to cover higher spending rather than take out new loans for the 2026/27 plan.
- The planned €3,000 Kinderstartgeld is canceled, with the funds redirected entirely to childcare facilities and their upkeep.
- A late‑October forecast lifted expected tax revenue by about €3.3 billion versus May, yet the finance minister warned that strict spending discipline remains necessary.
- Legal room to borrow roughly €2.3 billion, estimated at about 0.35% of state GDP, was available but declined to preserve the no‑new‑debt practice.
- Consolidation measures include a 2026 rule barring the creation of new teaching posts, as leaders prioritize research, universities, housing, hospitals and childcare.