Criticism Levied by the Federal Court of Auditors Towards the Budgetary Policy of the Union and SPD
Federal Government's Financing of Core State Tasks Criticized by Court of Auditors
The Court of Auditors has raised concerns about the federal government's financial management of core state tasks, particularly for the year 2026. In a recent report, the Court emphasized the need for sound financial management and sustainable ways to finance these tasks.
The Court's criticism centres around the government's plan to finance almost a third of its total budget expenditures with loans in 2026. This approach, according to the Court, is not sound financial management and could lead to an unsustainable financial plan.
The Bonn authority's analysis, as reported by news magazine Politico, highlights this criticism. The Court of Auditors criticized the federal government for its inability to permanently finance core state tasks from its revenues. Instead, the government is relying heavily on debt, a practice that the Court suggests is unsustainable.
The Court's criticism is specific to the federal government's financing of core state tasks in 2026 and does not address the fiscal policy of the SPD or the Union separately. However, it does reiterate the need for the federal government to find sustainable ways to finance these tasks.
The Court's report also underscores the importance of sustainable savings, a focus on constitutional core tasks, questioning subsidies, and prioritizing investments over consumption. Structural budget problems, the Court suggests, cannot be resolved by trusting in future positive economic development.
The federal government, according to the Court, must address its spending issues, both now and structurally. The Court's criticism reiterates that the government can no longer live beyond its means.
The Court of Auditors' criticism of the federal government's fiscal policy for the 2026 budget year is a reminder of the importance of sound financial management. It underscores the need for the government to finance its core state tasks from its current revenues and to make necessary adjustments to ensure a sustainable financial future.
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