Berlin Senate Plans Additional Budget Cuts for 2026-2027

Following a €3 billion reduction in 2025, the Senate aims to cut up to €1 billion more in the next budget cycle, with all departments required to submit spending plans by Easter.

• The Berlin Senate has approved preliminary budget guidelines for 2026-2027, targeting savings of €500 million to €1 billion, depending on updated tax revenue forecasts in May.
• Each Senate department has been assigned fixed budgets covering personnel, investments, and short-term expenditures, with spending plans due by Easter for review by the finance administration.
• Despite overall cuts, key sectors like education and science will see budget increases in 2027, with education rising to €5.499 billion and science to €3.554 billion.
• The 2026-2027 savings follow a €3 billion reduction in the 2025 budget, achieved through spending cuts, increased revenue, and alternative financing models like loans via state-owned enterprises.
• The Senate may declare an official state of emergency to finance refugee costs through loans rather than the regular budget, circumventing Germany's debt brake regulations.

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