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Saxony Passes €50.2 Billion Debt-Free Budget With Investment Cuts

The package complies with strict debt-brake rules to secure stable state funding.

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Overview

  • The budget lowers the investment quota from 16.8 percent in 2024 to 13.3 percent in 2025 and 12.6 percent in 2026.
  • The CDU-SPD minority government secured support from the Greens and Left Party after agreeing €250 million in targeted amendments.
  • Industry and trade chambers warned that the reductions in future-oriented spending threaten long-term growth and infrastructure development.
  • Funds for cycle paths on state roads were trimmed from €5 million to €1.1 million, drawing criticism from the German Cyclists’ Association over stalled projects.
  • Detailed June 28 allocations outline funding for police, health, education, transport and cultural programs under the new budget.