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Hanover (dpa / lni) - The debt level of the Lower Saxony municipalities has increased noticeably during the Corona crisis.
In 2020 it grew by 4.7 percent compared to the previous year to 1,673 euros per inhabitant and is thus only slightly below the national average of 1,722 euros per capita.
This is the result of a survey by the state development bank KfW, which was published on Thursday.
There is therefore great concern about the long-term consequences of the crisis. KfW chief economist Fritzi Köhler-Geib fears that municipalities will have to shut down their investments in schools, roads, climate protection and digitization. According to the survey, 85 percent of municipalities nationwide expect lower income due to the crisis in 2021 and beyond, 52 percent also expect higher expenditure. "Long-Covid threatens municipal finances," said Köhler-Geib.
Despite the recent increase in investment spending, the level is already often insufficient to maintain the existing infrastructure.
According to the study, the perceived investment backlog rose last year to a total of 149 billion euros (2019: 147 billion euros).
School buildings (EUR 46.5 billion), roads (EUR 33.6 billion) and administrative buildings (EUR 16.4 billion) continued to be the most important.
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In the crisis year 2020, the support from the federal and state governments - in particular the reimbursement of trade tax losses - prevented a massive budget deficit in the municipalities, according to the information.
Cities, municipalities and districts were able to close the year with a small surplus.
However, since some of the consequences of the crisis only take effect after a delay, there is a risk, according to the study, of rising budget deficits and growing local government debt.
© dpa-infocom, dpa: 210506-99-489231 / 2
KfW municipal panel