The average per capita debt in Bavaria has increased significantly in recent years. If you compare the years 2012 and 2023, the municipal debt value converted to the number of inhabitants climbed from 1,187 to 1,445 euros, as a spokeswoman for the Ministry of Finance announced in response to a request from the German Press Agency. This corresponds to an increase of more than 21 percent.
In a nationwide comparison, Bavarian municipalities are still at the forefront. The debt of the other western countries was 2,355 euros in 2023. Due to the different structures and histories of the federal states, a comparison is usually carried out among the western German states when it comes to key figures such as debt per capita, as this is the appropriate benchmark.
But the average per capita debt of all federal states was also significantly higher than the figure for Bavaria at 2,141 euros. The spokeswoman cited the municipalities’ high investment activities as the reason for the increased per capita debt in Bavarian municipalities. The crisis indicator of cash loans, which is actually the cause of municipal debt, continued to play no role in Bavaria. With an average investment rate of 22.9 percent, Bavaria’s municipalities were clearly above the average for the western states in 2022 (15.7 percent).
The State Chancellery announced on Tuesday after a cabinet meeting that the excellent position of the Bavarian municipalities, even compared to other countries, is also evidence of the strong support from the Free State. This is particularly evident in the financial resources that the Free State makes available to municipalities – despite the current difficult conditions for the state budget.
The government draft for the 2024/2025 double budget earmarks 11.38 billion euros for the municipal financial equalization for 2024. This means an increase of 212.8 million euros (1.9 percent) compared to the previous year – despite declining tax forecasts. In total, in 2024, almost 30 percent of the entire Bavarian state budget, over 21.25 billion euros, will go to the Bavarian municipalities within and outside of the municipal financial equalization system.