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Structural adjustment requirements in Saxony's state budget? Deficits can only be prevented by personnel savings

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  • David Bauer
  • Joachim Ragnitz

Abstract

In the future, the budget of the Free State of Saxony is likely to come under massive pressure due to demographic developments. Our revenue and expenditure projections for Saxony show that a structural budget deficit of 1.0 billion euros is to be expected by 2030. There is potential for savings, especially in expenditures for public staff. However, such savings would not fundamentally restrict the provision of public services of Saxony - but they would still require political assertiveness.

Suggested Citation

  • David Bauer & Joachim Ragnitz, 2020. "Structural adjustment requirements in Saxony's state budget? Deficits can only be prevented by personnel savings," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 27(04), pages 15-20, August.
    • Handle: RePEc:ces:ifodre:v:27:y:2020:i:04:p:15-20
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    File URL: https://www.ifo.de/DocDL/ifo-dresden-berichtet-42020-landeshaushalt.pdf
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    References listed on IDEAS

    as
    1. David Bauer & Joachim Ragnitz & Julia Sonnenburg & Michael Weber, 2018. "Public Staffing through 2030 in the Free State of Saxony and the Competitive Situation to the Private Sector," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 81.
    2. David Bauer & Joachim Ragnitz & Christian Ochsner, 2018. "Strategies for the Best Equipment and Use of Funds after 2020," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 82.
    3. Niels Gillmann & Robert Lehmann & Jannik A. Nauerth & Joachim Ragnitz & Julia Sonnenburg & Michael Weber & Jannik André Nauerth, 2019. "Wachstum und Produktivität 2035 – Innovations- und Produktivitätslücken auf Ebene der Bundesländer," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 84.
    4. David Bauer & Joachim Ragnitz, 2018. "Hat Sachsen zu viel öffentliches Personal? Warum ein Vergleich mit anderen Bundesländern in die Irre führen kann," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 25(04), pages 03-10, August.
    5. David Bauer & Joachim Ragnitz & Julia Sonnenburg, 2020. "Development of the Saxon Budget – an Calculation until the Year 2030," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 85.
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