Federal Audit Office Raises Concerns Over Health Loans

The Federal Audit Office has presented its report regarding the budget of the Federal Ministry of Health to the Budget Committee. As the committee prepares to finalize the budget for the current year, the proposed budget for 2025 is projected at EUR503 billion, increasing to EUR520 billion in 2026. However, adjustments are anticipated during the committee's budget reconciliation session, with outcomes expected later today.

The Audit Office has expressed that there is a need for modifications in the current proposals, scrutinizing the budget plans for both 2025 and 2026 closely. One significant area of concern is the government's plan to issue long-term loans to address shortfalls in both health and long-term care insurance. Specifically, the government intends to allocate loans of EUR2.3 billion to the health fund for both 2025 and 2026, with repayment not required until 2029. The auditors criticize this approach, arguing that it merely defers current financial issues and pushes the responsibility to future legislative terms.

For the Federal Ministry of Health, a budget allocation of EUR19.3 billion has been proposed. In the previous fiscal year, the total expenditures under this budget item amounted to EUR16.7 billion. The budget plan for 2026 anticipates expenditures of EUR20.1 billion, with projected revenues estimated at approximately EUR106.2 million for 2025 and a similar figure for 2026.

The auditors emphasize that lawmakers should closely monitor expenditures financed through loans in the coming years, ensuring effective and appropriate use of resources. They advocate for a sustainable and sound financial strategy that incorporates timely and effective reform efforts.