Söder speaks of 'countertrend': Bavaria with debt-free budget - Bavaria’s debt-free 2026/2027 budget prioritizes defense and infrastructure over cuts
Bavaria's Minister-President, Dr. Markus Söder, has unveiled a debt-free budget for 2026/2027, with a focus on infrastructure and defense news. The biennial budget, presented by Söder, will see the state drawing €4.9 billion from its reserves over two years.
Söder's budget aims to promote the defense industry with a new law and accelerate infrastructure projects in the Bundeswehr. To achieve these goals, the personnel expenditure ratio will be lowered to under 40%, and the investment ratio will rise to 17%, boosted by federal funds.
The budget includes significant savings news. €800 million will come from reduced migration costs, including lower refugee accommodation expenses and increased deportations. Additionally, €1 billion in savings will be made from state operations, including delayed pay raises for civil servants and reduced spending on receptions and public relations. Overall, the Bavarian government expects to save €2 billion in the 2026/2027 biennial budget.
Söder emphasized that the shift in funds from the scrapped Kinderstartgeld to operational subsidies for daycare centers is not a cut but a shift in news priorities. This move aims to support daycare providers struggling with rising operating costs. Despite a hiring freeze for state employees, 1,500 new teaching positions will be added in 2027 due to high demand.
Bavaria's debt-free budget for 2026/2027 focuses on investment in defense and infrastructure, with significant savings news to support these priorities. Despite a hiring freeze, new teaching positions will be added to meet demand, and daycare providers will receive additional operational support.
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