Brandenburg’s budget tops €18 billion for the first time despite planned cuts

Brandenburg’s planned budget will exceed €18 billion in both 2027 and 2028 for the first time, even as the state confronts multibillion-euro funding gaps.

Finance Minister Daniel Keller’s draft sets spending at €18.4 billion next year and €18.6 billion the year after. It provides for roughly €1.35 billion in new borrowing across the two years, alongside about €1.36 billion in financial transactions to increase the equity of the Investment Bank of the State of Brandenburg, which the state intends to take over fully.

Together, the measures amount to about €2.7 billion in borrowing for the two-year period. Keller argues that the financial transactions do not constitute debt because the assets remain state property.

Personnel costs, social assistance and funding for municipalities are rising. At the same time, the state plans to reduce staffing in its administration. Nearly all ministries would receive less from the state budget overall, although the reductions would also reflect the use of reserves and the release of unspent funds.

Brandenburg must close funding gaps estimated at €3.5 billion for 2027 and €4.5 billion for 2028. The planned exemption from day-care fees for children aged three until school entry would remain. However, a planned increase in staffing at nurseries from 2027 is being postponed, student assistance would be scrapped and the money redirected to a social fund, and water fees would rise. The cabinet is due to discuss the budget before the state parliament decides.