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Thuringia Faces Deeper Budget Squeeze After May Tax Estimate

A commission will hunt savings to cover the shortfall.

Overview

  • The May tax estimate projects €183 million less revenue for Thuringia this year and €172 million less next year.
  • The current two-year budget already carries a €210 million gap that the government says must be closed with savings.
  • A one-off census effect brings an expected €118 million payment, which cuts this year’s net hole to about €65 million, or roughly 0.5% of the budget.
  • The state will not cut transfers to cities and towns under the revenue-sharing system, even as local coffers are forecast to lose €24 million this year and €27 million in 2027.
  • A budget structure commission is combing through spending through summer with first findings due in autumn, and officials expect to dip into reserves as a 2027 supplemental budget looks unlikely.