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Rhineland-Palatinate Audit Finds Municipal Deficits Surging to €1.57 Billion

Auditors say rising social costs are straining local budgets.

Overview

  • State auditors report a total municipal deficit of about €625 million at the end of last year, the second-largest shortfall since 2010.
  • Preliminary figures show the deficit swelled to €1.57 billion in the first half of 2025 as expenditures outpaced revenue growth.
  • Nearly 40 percent of municipalities failed to balance their cash accounts in 2024, including 11 of 12 independent cities and 22 of 24 districts.
  • The Kommunalbericht flags inefficient administrative practices, identifies unnecessary spending, and outlines specific areas for savings.
  • Rechnungshof president Marcel Hürter calls for strict fiscal discipline backed by robust financial oversight and a joint effort by local, state, and federal levels.