According to the Federal Statistical Office, the financing deficit for municipalities rose significantly from €24.8 billion in 2024, with 7.5% of expenditures not covered by regular income. Key factors contributing to the increased spending include a 6.8% rise in personnel costs and a 5.9% increase in social benefits. The German Association of Cities has criticized the current financial structure, calling for a federal annual aid of at least €30 billion and reforms to enhance municipal revenue.