Berlin's Senator for Finance Stefan Evers.
© dpa
The Berlin state budget for 2026 and 2027 will be massively increased.
In both years, the state plans to spend 43.8 and 44.6 billion euros respectively, as Finance Senator Stefan Evers (CDU) announced at the presentation of the Senate draft. By comparison, the current year's budget has an adjusted expenditure volume of less than 40 billion euros.
Evers explained the strong growth with increased personnel costs and a massive increase in social expenditure, among other things. In order to finance the budget, significantly more new debt is planned than before, made possible by the nationwide reform of the debt brake. In the Senate's draft for the double budget, loans totalling 3.9 billion euros are planned for 2026 and around 3.8 billion euros for 2027. As Berlin may also have to take on a further billion euros in debt each year to finance the flight costs, the total debt could amount to around 5 billion euros annually.
In addition to debts and the last reserves, the federal government's multi-billion euro loan programme for "future investments" is helping to finance the state budget, according to Evers. Over twelve years, 5.2 billion euros will gradually flow to Berlin from this so-called special fund. In the new double budget, 333 million euros are planned for 2026 and 437 million euros for 2027. According to Evers, the districts will receive 50 million euros per year from this pot. According to the draft budget, the so-called global sums that the state transfers to them each year will increase to 9.5 billion euros in 2026 and 9.6 billion euros in 2027 - up from 8.8 billion euros in the current 2025 budget.
In the draft for the double budget, the budgets of the specialised administrations have increased in many cases. This is particularly the case with a doubling of the Senate Department for Urban Development and Housing, which is also responsible for housing. Below the global budgets, however, recipients of public money must also expect cuts. Because: "We will all have to make further savings," says Evers. "The state of Berlin is in an extremely tight budget situation," he said. The results of the tax estimate in May showed that no relief is to be expected for 2026 and 2027 either. The aim of the budget plan is to make targeted investments and "continue to consolidate moderately".
In terms of transport infrastructure, the focus is on investments in public transport, but also in bridge and road construction. Funding for housing construction will be doubled. Significant investment is also being made in digitalisation, as well as in the modernisation of police and fire service equipment. There would be no staff cuts and the districts would receive more money. Evers also cited school construction and climate protection with the conversion of the heating supply away from coal and gas as further priorities. Universities and cultural institutions would receive so-called transformation lump sums of 20 million euros each to support structural changes in these areas with the aim of permanently reducing costs. Following the Senate's decision, the draft budget will go to the House of Representatives, where the double budget is to be finalised by the end of December.