The Free State of Bavaria will also be given the top rating by the rating agency Standard & Poor’s in 2024. Finance Minister Albert Füracker (CSU) attributes this, among other things, to very low levels of debt compared to international standards. “Additionally, there are the solid institutional framework conditions and the very resilient, broad-based economy and business landscape in Bavaria,” the Ministry of Finance announced at the weekend. According to Füracker, the Free State has consistently received the top grade AAA/A-1+ with a stable outlook since 2012. Ratings express how creditworthy a company or country is. The better the rating, the more creditworthy the person being rated is. This usually leads to cheaper interest rates.
“Bavaria is and remains the guarantor of financial stability – despite the many challenges posed by the crises of recent years,” said Füracker. The government’s draft double budget for 2024/2025 continues the “solid and future-oriented budget policy”. Around 52 billion euros are planned for education and research and 22.4 billion euros in investment spending – and that without new debts in the state budget.
The double budget was recently debated for the first time in the state parliament. However, the final decision on the budget after the upcoming detailed discussions cannot be expected until June. The Greens in the state parliament recently accused the state government of delaying the process. The delay would particularly affect recipients of grants that are necessary but for which there is no legal obligation. These included social institutions, welfare organizations, and sometimes municipalities. Füracker’s house defended the schedule and opposed the theory that there was a threat of a “standstill”, as denounced by the Greens.