Taxes collapse more than expected

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The falling tax revenues as a result of the Corona crisis will probably tear an even bigger gap in the budget in Brandenburg next year than expected. In 2021, the state will have to reckon with additional income of around 490 million euros compared to the tax estimate from May, said Finance Minister Katrin Lange (SPD) on Tuesday after a cabinet meeting in Potsdam. She spoke of “very dramatic” effects. For the years 2022 and 2023, the tax estimate for Brandenburg assumes additional shortfalls in income compared to the May forecast of around 408 million euros each.

This brings a new problem to the Kenya coalition. In the draft for the 2021 budget, the government had calculated an income minus of 510 million euros based on the May tax estimate. This is almost doubling now. “There is an urgent need for action here,” said the finance minister. The coalition must discuss how the revenue shortfalls are to be compensated. Further loans or other measures are possible.

The red-black-green state government wanted to take on new debts of around 1.9 billion euros and take around 662 million euros from the reserve because of the corona crisis. Among other things, this is to prevent companies from becoming insolvent. The state parliament had already decided on a corona rescue package of up to two billion euros this year and a future fund of one billion euros last year – each by credit. Despite the tense financial situation, the Kenya coalition had previously announced that it would hold on to many projects.

For this year, the earnings expectations are slightly better. According to Lange, however, they are so low that the unfavorable prognoses from the spring have essentially been confirmed in her assessment. The losses in the current year compared to the expectations based on the October 2019 tax estimate are just under 1.1 billion euros – the estimate from May had resulted in around 1.15 billion euros.

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