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Lower Saxony releases 19.58 million euros for financially weak municipalities!
Salzgitter will receive 7.5 million euros as part of Lower Saxony's financial support allocations.
Lower Saxony releases 19.58 million euros for financially weak municipalities!
In Lower Saxony, the coffers of financially weak municipalities are once again being dipped into heavily. A total of 70.1 million euros flow from the municipal financial equalization into the cash-strapped coffers of 32 municipalities that are particularly suffering from financial bottlenecks. This reports regionalheute.de. This allocation is an important measure that is intended to ensure the financial ability of these municipalities to act.
On average, the allocations only cover around 10% of the accumulated deficits. However, the support is not as generous as in previous years because the funding rates have been reduced. Another downer: The funds provided may only be used to cover past deficits; direct investments or visible measures are not permitted.
Requirements allocations for cash-strapped municipalities
| commune | Donation (in euros) |
|---|---|
| City of Salzgitter | 7,500,000 |
| Helmstedt district | 6,240,000 |
| City of Schöningen | 1,010,000 |
| City of Königslutter am Elm | 990,000 |
| City of Braunlage | 950,000 |
| Heeseberg municipality | 1,250,000 |
| North Elm community | 740,000 |
| Municipality of Schladen-Werla | 35,000 |
| Sickte joint municipality | 340,000 |
| Municipality of Liebenburg | 21,000 |
These allocations are specifically intended for highly indebted municipalities that are in difficult financial situations and are dependent on fiscal consolidation. Due to increased costs and an increasing dependence on liquidity loans, this approach has become more than necessary. How dieniedersachsen.de reported, the grants were made even more extreme in 2024, as 82 municipalities had applied for needs allocations. The rule here is that only municipalities with a proven willingness to consolidate will receive funds.
The municipal financial equalization (KFA) should not be underestimated. Calculated annually by the Lower Saxony State Office for Statistics, it is one of the most important sources of income for Lower Saxony cities and communities. Loud statistic.niedersachsen.de The system is based on a variety of factors such as population, area and tax capacity. These allocations are of enormous importance for financially weak municipalities in order to maintain financial flexibility and to pay long overdue expenses.