The Federal Audit Office has criticized the German government for increasing its spending on external consultants, which has led to a loss of core government functions. According to a report, the government’s expenditures on external consulting and support services have risen by 39% to approximately 240 million euros in 2023, since 2020.
The report, which was submitted to the Budget Committee of the German Bundestag on Tuesday, states that there is a lack of strategy to reduce the use of external consultants and a lack of transparent reporting to the parliament. The committee had previously urged the government to significantly reduce the use of external consulting services and to build up its own capacities.
The report highlights that there is still no strategy in place to reduce the demand for external consultants and many of the services provided by external consultants, particularly in the IT sector, have been exempt from reporting requirements. As a result, effective parliamentary control based on the consultant reports submitted by the government to the Budget Committee is not guaranteed.
The Federal Audit Office is concerned that the government may become too dependent on external consulting companies, especially in key areas of the federal administration. The report notes that the government has ceded too much control in large IT projects.
The Left party is calling for changes, with a representative stating that the government’s spending on external consulting and support services, which has totalled over 1.6 billion euros in the last decade, is a slap in the face of taxpayers. The representative argues that the federal administration is as large as ever, yet the expenditures on external services have still risen by around 40% in recent years.
The government should reduce costs and ensure maximum transparency, the representative said, adding that core government functions should be handled in-house, with external consultants being the exception rather than the rule.