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Wednesday, November 30, 2022

Nuremberg: Federal Agency can present a balanced budget again

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Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
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For three years, huge gaps in the budget of the Federal Employment Agency, some of them billions, had left their mark. In 2023 things will look better again.

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After three years of high deficits, the Federal Employment Agency will present a balanced budget for the year 2023 for the first time. The budget of the Nuremberg authority with 105,000 employees will include income of 42.6 billion euros, said the chairwoman of the federal agency, Andrea Nahles, on Friday in Nuremberg. This is offset by expenditure of 40.6 billion euros. A federal loan of around 800 million euros, which was granted to balance the 2022 budget, is to be repaid from the surplus.

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In addition, the federal agency wants to start building a reserve again. The cushion of around 26 billion euros had melted to zero during the pandemic. According to experts, the federal agency needs a reserve of around 25 billion euros as an effective reserve for emergency situations. Rebuilding this will take years, said Nahles.

The basis for the budget planning was the autumn forecast of the federal government. In its planning, the Federal Agency assumes a slight increase in unemployment to 2.5 million next year and an annual average of 200,000 short-time workers – still well above the level before the corona pandemic. Despite economic problems, the labor market has proven to be robust. “We can also assume that for next year,” said Nahles.

Agency: Very good employment situation

The income will be significantly higher next year than in 2022. The reason for this is, on the one hand, the return to the statutory contribution rate of 2.6 percent – the contribution was temporarily reduced to 2.4 percent in 2019 and will return to the old level in early 2023. On the other hand, the employment situation is very good – which flushes high income from contributions into the coffers of the BA.

In terms of spending, the Federal Agency wants to place a clear focus on further training in addition to digitization. “We want to make any meaningful and eligible further training possible,” she emphasized. The federal agency will use around eight billion euros for active employment promotion in the current year. “That’s why we’re putting a shovel on top of that for next year,” said Nahles. 9.6 billion euros are planned for 2023. “We all have to know: We have a shortage of skilled workers in front of our chests,” said the chairwoman of the BA board of directors, the employers’ representative Christina Ramb.

The Federal Employment Agency plans 900 million euros for insolvency money in the next year – this means no increase compared to the approach in the current year. In the years 2021 and 2022, significantly less money was actually needed to cushion company bankruptcies. Together with her co-chair Anja Piel, she criticized the federal government for using the agency too much for administrative processes beyond its actual tasks. It cannot be that the BA becomes the “Federal Agency for Administration of the Federal Government,” said Ramb, with a view to the tasks of the Nuremberg authority, for example in the payment of relief in the energy crisis.

Source: Stern

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