Opposition from FDP towards the establishment of a fresh financial institution
In a recent development, Finance Minister Danyal Bayaz (Greens) has introduced a bill to establish a new State Center for Financial Management, located in Karlsruhe. The bill, often referred to as the "Bible of budget law," aims to change the State Budget Ordinance, a key financial law in the state.
The creation of this new center has been met with criticism from Frank Bonath, the financial spokesman for the FDP faction. Bonath has labelled the new budget law as a "technocratic law" and a "Green-black bureaucracy reduction at its best," while criticizing the establishment of a new authority under the guise of simplification.
The State Center for Financial Management will be directly assigned as a staff unit to the President of the Upper Finance Authority. One of its primary roles will be to implement a complex budget software, for which a central competence authority will be necessary for support. Critics argue that this software could lead to increased bureaucracy rather than reduction, as the software's complexity necessitates a centralized authority.
The new center also plans to implement various organizational innovations and reduce bureaucracy. It is believed that these innovations will streamline data transmission from the administration to the audit office, contributing to more efficient financial management.
The State Center for Financial Management will operate using SAP software, a widely-used enterprise resource planning software. This software is known for its robust features, which are expected to help the center manage the state's financial affairs more effectively.
While the specific changes to the State Budget Ordinance, as proposed by Finance Minister Bayaz, have not been detailed, it is clear that the new center aims to enhance financial management practices within the German state budgets. The center's impact on the financial landscape of Germany remains to be seen, as the debate surrounding its creation continues.
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[1] Federal Finance Agency: [2] Bundesbank and BaFin:
- The management of the new State Center for Financial Management has proposed to implement various organizational innovations with the aim of reducing bureaucracy, using SAP finance software, a well-known enterprise resource planning tool, to streamline financial management practices.
- The establishment of the State Center for Financial Management, under the control of the President of the Upper Finance Authority, will bring about significant changes in the business of financial management, with critics questioning whether the center's proposed use of complex budget software will lead to increased bureaucracy rather than reduction.
