Fear of Seven Million Euros Revenue Shortfall for Halle - Revenue shortfall of approximately 11 million euros warning for Halle
Halle Faces Potential Eleven Million Euro Revenue Loss Due to Census Discrepancy
The city of Halle, Saxony-Anhalt, may face a significant annual revenue loss of approximately eleven million euros due to population data provided by the State Statistical Office. This discrepancy impacts state allocations regulated by the Financial Equalisation Act (FAG), as stated by city officials.
According to the State Statistical Office, as of May 15, 2022, the official resident population of Halle (Saale) stands at 226,586 persons. This figure contrasts significantly with the current resident population registered in the city's local offices, which was approximately 242,500 as of May 20, 2025.
Lord Mayor Alexander Vogt stated that in collaboration with other affected municipalities in Saxony-Anhalt, they will examine potential legal avenues to alter the FAG regulation. Vogt asserted that financial allocations to municipalities should be based on actual resident populations from registration offices rather than statistical census estimates.
The Financial Equalisation Act (FAG) in Germany determines how federal and state transfers are allocated to municipalities. The official resident population—which often comes from municipal registers but may be supplanted by census results—is a crucial factor in these allocations. Discrepancies between census data and municipal registers can occur due to various factors, including unreported moves, duplicate registrations, and errors in address data. If the census reveals a lower population than that registered locally, municipalities may face revenue losses, as funding is often calibrated based on new official population figures.
Although specific legal measures under consideration have not been publicly disclosed, municipalities can challenge census results or advocate for the use of updated municipal register data if they believe the census undercounts their population. In such situations, states and the federal government may consider transitional regulations to mitigate revenue losses or provide compensation to affected municipalities.
Halle currently faces the potential revenue loss due to a perceived undercount in the 2022 census. To address this issue, the city will examine all available legal means and advocate for a change in the FAG regulation to base funding on actual resident populations according to registration office records.
The city of Halle is planning to investigate legal avenues to challenge the Financial Equalisation Act (FAG) regulation, as they believe that their revenue losses, estimated at eleven million euros annually, are a result of using census data instead of actual resident populations from registration offices. This misunderstanding in population data can also impact future business, politics, and general-news within the community, given that vocational training programs could potentially be underfunded due to the revenue loss. Finance and the politics surrounding it play a significant role in the city's efforts to rectify this situation, aiming for a more accurate determination of funds allocation and, thus, supporting the growth and prosperity of both the city's vocational training sector and wider community.
