After a drop in trade tax: City of Marburg has a million-euro hole in its budget – but sees “no drama” | hessenschau.de

Only 96 million instead of the originally expected 158 million euros in trade tax revenue: On Friday, the city of Marburg announced that it had to pass a supplementary budget. This budget provides hope of around 15 million euros.

According to companies, the city will also have to make do with less trade tax than planned in 2025. Nevertheless, there will be no noticeable restrictions for citizens.

The city explained why this is the case on Monday when asked by HR. “For the city of Marburg, the budget deficits are not a drama at first,” said a spokeswoman. For years, the budget expenditures have been set higher than what was actually possible – there was also money left over. For 2023, this happened in the areas of “goods and services” and “subsidies and grants”, here it was a good 20 million euros.

City: No cuts to promised subsidies

There are various reasons for this: spending has been deferred, projects have become cheaper, and in some areas “safety margins for eventualities” have been planned, also based on experience from the crisis years. Overall, cuts could also be avoided, said the spokeswoman. Where necessary, even higher spending has been planned in the supplementary budget.

No promised subsidies would be cut, she stressed. The administration is responding to increasing challenges such as higher wage agreements by “increasing efficiency in the completion of tasks” and “providing services more cost-effectively”. The administration should also improve. “This is a lengthy process for the future – and for budget planning from 2026 onwards,” it continued. And: “The preparation of the budget for 2025 is practically already complete.”

Marburg has financial and time buffers because the city has been able to offset its deficits for many years to come through high reserves. However, the money is to be used for investments in the long term.

Revenues still bubbling between 2021 and 2023

Between 2021 and 2023, the city was still able to enjoy substantial trade tax revenues, with around 480 million euros in 2021 alone. Around 80 percent of this came from the local pharmaceutical industry, as Mayor Thomas Spies (SPD) said in an interview at the beginning of the year. Lock.

The city is not allowed to name individual companies due to tax secrecy, it emphasized.

Important taxpayer slipped into the red

However, one important trade tax payer is known: the company Biontech, which is based in Marburg, among other places, and which had a deficit of over 807 million euros in August. reported – which was once again significantly higher than the minus of 190.4 million from the same period last year.

According to the company, the net loss in the first half of 2024 amounted to over 1.1 billion euros. In the same period last year, Biontech had reported a profit of 311.8 million euros.

Investment in schools and daycare centers planned – actually

In the good times, the distribution of the money in the Marburg city council had led to disputes and the Left Party's withdrawal from the governing coalition. Part of the dispute was also a reduction in the trade tax rate from 400 to 357 points in 2022.

Finally, the city invested 350 million euros in a special fund with bonds and shares – from here the money is to be invested in schools, daycare centers, housing, social facilities, culture and fire protection.

The supplementary budget is now to be discussed on October 8 in the main, finance and economic committee and on October 11 in the city council.

Editorial staff:
Sonja Fouraté

Broadcast:
hr4,

16.09.24, 15:30

Source: hessenschau.de

Published on 16.09.24 at 21:10