Neukölln in budget shortage: District office announces third budget lock

Neukölln in budget shortage: District office announces third budget lock

The district office Neukölln recently decided to have a budget lock that has far -reaching effects on the district's finances. This step became necessary because despite considerable restrictions, a non -balanced budgetary degree threatens for 2024. The district office must therefore again save over EUR 10.1 million in the coming year.

The budget lock means that from now on only absolutely necessary obligations may be received. The main focus is on maintaining important functions such as district facilities, mandatory tasks and legal obligations. Expenditures that affect proper administrative activity or ongoing construction measures are still possible. All income must now be generated by the different business areas.

District Mayor Martin Hikel emphasized that despite the commitment to the district, the current financing structure is not sufficient to ensure the best offers and citizen service. The third budget lock within a year shows the urgency to rethink the financing structure in Berlin. Hikel sees the need to ensure more reliability in the offers of the district and strives for a balanced annual financial statements to start the new year without negative credit.

The latest budget lock is the third in Neukölln within 12 months. As a result, the district office had to take similar measures twice earlier to reduce a threatening deficit. It remains to be seen how the state of Berlin's financing structure will develop in the future.

Source: www.berlin.de