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

David Bauer, Joachim Ragnitz
ifo Institute, Dresden, 2020

ifo Dresden berichtet, 2020, 27, Nr. 4, 15-20

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.

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ifo Institute, Dresden, 2020