Improvements in income due to the autumn tax estimate and the state's financial package cannot fully compensate for this. This is why the deliberations for the state capital's next double budget in the coming week will be completely dominated by consolidation. The city administration informed the municipal council of this today, November 14, 2025. Proposals from the parliamentary groups and the administration on how to close the considerable funding gap will be discussed as a matter of urgency.
Slump in trade tax income
Business taxes make up a large part of the state capital's revenue. In the past three years, they have accounted for between 23 and 30 percent of total revenue. Since 2022, revenue from business taxes has been between around one and one and a half billion euros. In contrast, Finance Mayor Thomas Fuhrmann now only expects around 750 million euros in trade tax revenue for 2025 due to current economic developments. And the estimates for 2026 have to be revised downwards by 200 million euros to 700 million euros and by 100 million euros to 800 million euros for 2027 compared to the introduction of the double budget.
This is shaking up the budget plan submitted in October. "The foundation we wanted to build on is no longer there," says the finance mayor. "We have to go back to the drawing board. The very first goal must be to achieve an approvable budget in order to maintain our own ability to act. That will be a huge challenge for everyone in 2026/27."
According to Fuhrmann, the necessary cuts will probably be clearly felt in all parts of the city's society. However, the goal can only be achieved if no area is left out. This is the only way to maintain any room for maneuver in order to be able to set important priorities for the city through voluntary support measures that go beyond the municipality's purely mandatory tasks. "If we don't succeed in doing this, the period without a budget would mean a standstill in many areas," emphasizes Fuhrmann. "That would certainly do more harm to the city's society than painful but necessary budget cuts."
