Financial experts have called on the state of Saxony-Anhalt to limit its spending and cut staff. “In terms of financial policy, things will be uncomfortable in the next few years,” said Auditor General Kay Barthel in Magdeburg. “You have to move the big wheels.”
The pace of debt has increased significantly since the introduction of the debt brake in 2020. It was said that almost five billion euros in new debt had been incurred in just six years. From 1990 to 2019, the debt grew to around 20.2 billion euros. Most recently, the country's debt level was around 24.9 billion euros.
More than 1,000 jobs fewer due to hiring freeze
The scope for action would be massively restricted in the future, said Barthel. He called on state politicians to make cuts in personnel. Martin Werding from the Advisory Council for the Assessment of Overall Economic Development also emphasized that structural reforms were necessary - more digitalization, less bureaucracy for administration and a reorganization of tasks.
The number of staff in the state administration has recently fallen as a result of a hiring freeze. At the end of 2024 there were 41,897 so-called full-time equivalents in the country; at the end of August 2026 there were 40,725. This number indicates how many full jobs correspond to a certain amount of work. Part-time and full-time employees are converted into a uniform key figure. This allows the actual personnel deployment to be presented in a comparable manner - regardless of how many hours individual employees work.
“We still have a very large workforce,” Finance Minister Michael Richter (CDU) recently admitted. “You have to further reduce the staff. Otherwise the budget gap will not come close to being closed. By the way, it’s no different for other countries.”
Who will prepare the 2027 budget?
Saxony-Anhalt has imposed a hiring freeze for 2025 and 2026 in order to curb personnel costs. Expenditures have increased continuously in recent years; in 2025 they were around 4.51 billion euros. This year, the estimate for personnel expenses is around 4.62 billion euros. The ban on new appointments does not apply to all areas, with the exception of police officers and teachers.
“The hiring freeze should actually just be the beginning,” said Auditor General Barthel. Jobs would have to be reduced - also in view of the fact that Saxony-Anhalt is becoming smaller and smaller in terms of population.
One possibility for action would be the state budget for 2027. The incumbent government is required to draw up this and submit it to parliament for a vote, said Barthel. “That probably won’t happen again until December,” said the President of the Court of Auditors.
More than a billion euros are missing
An alliance of the CDU, SPD and FDP currently governs Saxony-Anhalt. In the state elections at the beginning of September, the coalition did not get a majority; the AfD clearly won the election. She is currently in discussions with the BSW about possible collaboration. This means that there is a kind of transition phase.
Finance Minister Richter believes that the outgoing state government is required to push ahead with the preparation of the budget after the AfD election victory under certain circumstances. “That now depends on developments as to the extent to which there will be a prime ministerial election this year and thus a new state government,” said Richter to the German Press Agency. If that is not the case, then the caretaker state government would have to take measures to prepare a budget.
According to the ministries' registrations, there is a gap of well over one billion euros for 2027, which must be closed during the budget discussions. Richter did not want to comment on this. “Even if a draft budget were to be negotiated this year, provisional budget management will begin in 2027,” said the CDU politician.
Consequences for municipalities, clubs and associations
Provisional budget management takes effect if a budget is not passed in time before the start of the new year. It allows the government only limited spending – essentially to maintain administration and meet legal obligations – until the regular budget is approved.
Prime Minister Sven Schulze (CDU) also recently emphasized in the ARD program “Maischberger” that the incumbent government would have to draw up a budget if the AfD did not elect a prime minister in November. “The municipalities, the clubs, the associations – they all need clear statements. The budget is the most important thing for us for 2027,” said Schulze. AfD co-parliamentary group leader Ulrich Siegmund would like to be elected prime minister in December.
Barthel was skeptical about the AfD election promises such as free daycare and school meals. Even without new expenditure, there is a coverage gap of well over one billion euros, said the President of the Court of Auditors. “Until they have collected what they already lack, they have no scope for anything else.”
