Communities: High Social Expenditures - Fewer Investments - Thuringia's Local Governments Face Financial Strains in H1 2025
Local governments in Thuringia witnessed a varied financial landscape in the first half of 2025. While revenues from local taxes climbed by 1.8% to €904.2 million, investment funding from state transfers plummeted by 21% to €197.7 million. Despite this, expenditure surged by 5.2% to €3.82 billion, driven by higher social welfare and personnel costs.
State transfers continued to be the dominant revenue source for local governments in Thuringia, amounting to €2.07 billion. However, investment funding from these transfers dwindled significantly, potentially impacting future infrastructure projects.
The increase in spending was largely due to higher social welfare payments (up 5.3% to €1.04 billion) and personnel costs (up 5.6% to €1.02 billion). This resulted in a 1.3% drop in investment spending to €367 million. The Thuringian County Association and the Association of Towns and Municipalities advocated for enhanced funding in the 2026/27 biennial budget to alleviate these pressures.
As of October 2025, no specific authorities or interest groups had publicly sought increased funding volumes for municipal finances in the coming years. Details on anticipated additional expenditures for social welfare and personnel costs remained uncertain.
The financial scenario in Thuringia's local governments was becoming strained, with increased spending on social welfare and personnel costs outpacing revenue growth. Investment spending had decreased, and local associations had called for better funding in the next budget cycle. A protest was planned in Erfurt to emphasize the lack of funds for maintaining public swimming pools, highlighting the need for local governments to manage their budgets efficiently.
