News from City Hall

Nuremberg City Approves 2022 Budget and Increases Debt

News from City Hall
© Anja Junghans

A large majority voted in favour of the 2022 budget for Nuremberg on 18th November 2021 after just under five hours of deliberation.

Last week Nuremberg City Council approved its budget for 2022. After almost five hours of deliberation, a very large majority voted in favour.

Lord Mayor Marcus König was pleased with such a large majority vote, “We are in the midst of modernising and expanding our schools and childcare, bringing our transport infrastructure up to date, continuing to drive forward digitisation and setting the course for the transport turnaround. And then we still have the greatest challenge of our time ahead of us – combating climate change. I would like to thank everyone involved in the City Council and the administration.”

City Treasurer Harald Riedel says, “in the medium term, financing these investments will exceed the city’s financial means and lead to higher debt in the next few years. Cities like Nuremberg, therefore, need more financial support from the federal and state governments for climate protection and the transport transition.”

So, what is the budget of the city of Nuremberg next year?
The income is around €2.16 billion. The expenditure is €2.17 billion.

Does that mean there is a deficit in the 2022 budget?
Yes, the budget deficit is around €16 million. However, due to higher than expected tax revenues, it is €38 million lower than initially planned.

What leads to this deficit?
Among other things, there are the increased expenses due to the Covid-19 pandemic and the rising costs for goods and services in general. The number of jobs will increase by almost 300 across the city in the areas such as childcare, the mobility pact and digitisation.

Will the city take on new debt?
Yes, the new net debt for the next year is €170 million. Originally, €200 million was planned. Here, too, the higher tax revenues will help.

How high will the total debt in the 2022 budget be?
The city’s total debt in the core budget will rise to just under €1.7 billion next year.

What are the largest blocks of expenditure in the city budget?
These are the social transfer expenses in the amount of €882.3 million along with the personnel expenses and pension benefits of €735.5 million.

How much will the city invest over the next few years?
Investments will total €445 million next year. Of this, the city will contribute €307 million from its own funds, with the rest being grants. The medium-term investment plan envisages investment requirements in the period 2022 to 2025 of €2.1 billion, of which €669 million are third-party funds and €1.4 billion are the city’s own funds.

What projects will be invested in by 2025?
For example, €117 million in childcare and €700 million euros in schools. In addition, €400 million will flow into the mobility resolution with a focus on strengthening public transportation and cycling in the city.

Translated from the Nuremberg City Press Release No. 1187 / 18.11.2021

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