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Tax Forecasts Lift Revenues for Hamburg and Schleswig‑Holstein but Leave Little Spending Room

A weaker long‑term tax trend alongside mandated cost growth points to a tough 2027/2028 budget.

Overview

  • Hamburg now expects roughly €2.5 billion more in tax receipts through 2030 than forecast in May, with 2025 revenues seen at about €16.5 billion and rising toward the high €18 billions by decade’s end.
  • Schleswig‑Holstein projects around €1.1 billion in additional revenues through 2029, yet its finance ministry says the gains primarily reduce borrowing for a state still carrying roughly €32 billion in debt.
  • Hamburg’s finance senator rules out new recurring spending and warns many cost increases cannot be fully offset as legally mandated social services outpace revenue growth.
  • Pending federal tax measures not included in the state forecasts could erode the uplift, with Hamburg estimating roughly €450 million less if proposals such as a higher commuter allowance and a reduced VAT for gastronomy take effect.
  • Local finances see a modest boost, with Schleswig‑Holstein municipalities’ own revenues estimated at about €4.9 billion in 2025, while both states flag one of the most difficult budget rounds in years for 2027/2028.