Budget freeze planned: City of Jena reacts to declining trade tax revenues

The current May tax estimate was published by the Federal Ministry of Finance on May 15, 2025. As of today, the regionalized forecasts for Thuringia are available. It is becoming apparent that the current trade tax revenue in particular will fall considerably short of expectations and that the city of Jena will have to take countermeasures with a budget freeze.

Significant decline in trade tax revenue

Revenue from trade tax in particular has fallen. At present, revenue for 2025 is around 20 million euros below the planned estimate of 99.5 million euros. A comparable decline was last recorded in 2019.

"In total for the years 2025 to 2029, we expect trade tax revenue to fall by a total of 60 million euros. Income tax revenue will also fall significantly during this period," reports Mayor and Head of Finance Benjamin Koppe.

In addition, queries are currently being made regarding the earnings forecast as part of the first tertial report of the City of Jena (reporting date 30.04.2025). Initial findings indicate a significant deterioration in the budget result for the current year. According to the city budget resolution, countermeasures must be taken in the event of a deviation of more than two million euros - this threshold will be reached with the tertial report on 30.04.2025.

Budget freeze as an instrument of financial policy to react flexibly to revenue shortfalls

Against this backdrop, the Lord Mayor of the City of Jena is expected to order a budget freeze in June in accordance with Section 22 of the Thuringian Municipal Budget Ordinance (ThürGemHV).

"We are facing a serious but not insurmountable challenge. A budget freeze allows us to react flexibly and responsibly to unexpected revenue shortfalls. This does not mean that all expenditure is stopped - but it does mean prioritizing and entering into as few new commitments as possible," explains Koppe.

Which specific areas will be affected by the lockdown and to what extent is currently being carefully examined. The city administration will proceed with a sense of proportion and continue to guarantee central tasks of general interest as well as ongoing obligations. The city has already implemented similar measures in 2019 and 2020 - in each case without unduly restricting the administration's ability to act.