Brandenburg Audit Office Criticizes State's Billion-Euro Annual Debt Plan

The Landesrechnungshof warns of postponed fiscal consolidation, fully committed reserves, and deferred debt repayments under the SPD/BSW-led government’s strategy.

• The Brandenburger Landesrechnungshof has condemned the state government’s plan to incur approximately €1 billion in new debt annually.
• Audit officials criticized the deferral of fiscal consolidation efforts, which they argue jeopardizes long-term financial stability.
• The state's €700 million general reserve has been fully allocated, leaving no flexibility for managing unforeseen fiscal challenges.
• Debt repayment for contingency years 2025 and 2026 has been postponed, raising concerns about increased burdens on future budgets.
• The SPD/BSW-led government defends the borrowing strategy as a necessary response to ongoing economic pressures.

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