Hearing in the finance committee of the Schleswig-Holstein state parliament


The statement deals with an analysis by the State Auditors of Schleswig-Holstein on the sustainability of the state’s finances. It first emphasizes that compliance with the debt brake by definition ensures sustainable public finances of the state, since a constant debt level is a more stringent goal than a constant debt-to-GDP ratio. Sustainability analyses allow for foreseeable developments in individual expenses to be represented, as well as the long-term effects of reforms or events to be estimated. This allows them to supplement medium-term planning. Comparing different analyses over time and sensitivity analyses can provide a better understanding of the significance of individual assumptions and the effects of financial policy decisions. However, an isolated interpretation of the sustainability gap has less informative value. The statement also contains a suggestion that when conducting sustainability analyses for individual states, municipalities should also be taken into account. In general, in such analyses, intergovernmental transfers and mutual dependencies are important and not easy to model.

Written statement for the preparation of an expert meeting in the finance committee of the Schleswig-Holstein state parliament on December 8th, 2022 regarding the sustainability of the state’s finances, Print 20/493, December 2022