Every third euro from the municipalities goes towards social and youth welfare!

Every third euro from the municipalities goes towards social and youth welfare!

The current figures speak for themselves: cities and municipalities in Germany invest over a third of their budgets in social issues and youth development. This development is particularly impressive in a study by the German Economic Institute (IW Cologne), which shows that spending in this area has increased by a huge 50% since 1992. Particularly noteworthy is the increase in social assistance and child care, which are no longer just minor aspects of municipal budgets, but rather represent central tasks. Radio Cologne reports that this is not only a challenge but also a necessity for today's municipalities.

The composition of municipal spending has changed significantly over the last 30 years. While other areas, such as road construction or sewage and waste disposal, are declining, social spending has become more important. These changes are often the result of political decisions at the state and federal levels. A large part of municipal spending is determined by legal regulations such as SGB II (basic security), SGB VIII (child and youth welfare) and SGB XII (social assistance), which has a direct influence on the financial situation of the municipalities. These laws form the basis of municipal social spending, which includes different facets such as cash benefits, infrastructure and services and now has a permanent place in the budget.

A look at the financial challenges

It is no surprise that high social spending is leading to fiscal problems in many cities and municipalities. This challenge is particularly pronounced in financially weaker municipalities. According to a comprehensive analysis, gross spending on youth and social affairs is continuously increasing nationwide, and the results of the Federal Agency for Civic Education also show a dramatic increase in social security spending. In 2017, these amounted to around 788 billion euros, which accounted for 57.2% of public budget expenditure. The bpb emphasizes that social security in particular, which took up 621 billion euros, plays a central role in this structure.

This development could have far-reaching consequences for municipal finances. The current discourse about the federal government relieving the burden on municipalities is therefore viewed by many as urgently necessary. While the demand for financial compensation between the federal and local governments is shared across parties, the specific need for action often remains in the background. To date, there is no uniform approach to providing municipalities with the financial resources they need to cover their social burdens. A look at the regional differences shows that in North Rhine-Westphalia and Hesse, for example, the municipalities cover the largest share of social spending at 85%, while Thuringia has the lowest share at 38% Wikipedia makes these differences clear.

In summary, municipal social spending is not just a question of budget, but also a statement of the social priorities and challenges that cities and communities face. The studies show that these investments have strong social relevance and at the same time illustrate the need to find necessary relief for municipalities. A strong sign in times when social integration and child care are more important than ever.