Debts: This Was Communicated to Marterbauer

Now Marterbauer is waiting for "detailed information." However, he did not want to confirm at a press conference with Upper Austria's State Councilor Martin Winkler (SPÖ) in Linz that this could increase the deficit from 4.5 percent of GDP to 4.9 percent.

Marterbauer against "mutual blame"

Together with the new figures available from Statistics Austria for the third quarter, the Ministry of Finance is trying to assess the revised data. Marterbauer emphasized that budget consolidation is a nationwide task that can only succeed together with the federal government, states, and municipalities. As required by the EU, "we must come below three percent of GDP in the deficit by 2028." He does not support "mutual blame." Vienna is said to be primarily responsible for the higher deficit. According to Marterbauer, "a number of federal states," including Lower Austria, are also involved. At the same time, he highlighted that the federal government has already taken the lead with the adoption of the consolidation budget for 2025/2026, and the targets have been "exceeded."

Since Monday evening, a list of the net financing balances of the states for the year 2025, showing the difference between the respective revenues and expenditures of the federal states, has been circulating in the media. Some of these figures are already known and have been communicated by the states themselves. Vienna stands out with a negative balance of 3.2 billion, followed by Styria with minus 942 and Lower Austria with a minus of 891 million.

The city of Vienna, for example, publicly communicated its figures at the beginning of the year - specifically on January 10, as stated from the town hall on Tuesday. The projected deficit was then at minus 3.8 billion euros. In addition, it was announced in October that this had improved by about 600 million euros. This circumstance has been communicated to the federal government "on several occasions," as emphasized from the Vienna town hall. It was also pointed out that the expenditure dynamics have intensified, especially in the areas of state and municipal competencies. Costs are rising above average, particularly in the areas of early childhood education, care, and health.

Mikl-Leitner: "Massive cost increases"

Similarly, the argument in Lower Austria: Governor Johanna Mikl-Leitner (ÖVP) stated on Tuesday that the states have to bear "massive cost increases." In this context, she pointed to an increase in expenditures since 2020 of 50 percent in the healthcare sector and 40 percent in childcare in the state. "States and municipalities have received more and more tasks in recent years and had more expenses," Mikl-Leitner noted on the sidelines of a press briefing when asked. About 87 percent of the debt lies with the federal government. Now a way must be found between the federal government and the states on how to proceed with the Stability Pact: "Now it's about putting the numbers beyond dispute, waiting for the discussions, and then making further deductions."

Vienna's Mayor Michael Ludwig (SPÖ) also pointed out on Tuesday on the sidelines of a press conference that Vienna is both a "state and a municipality": "When comparing Vienna with other states, one must also include the deficits of the municipalities of the respective state." Looking at the per capita debt, Vienna is "pretty much in the middle." Furthermore, it must be made "clear" that the main part of the deficits lies with the federal government and not with the states and municipalities, said Ludwig: "And I am convinced that we will discuss this very intensively at the Governors' Conference in Styria."

Numbers come at an inopportune time for the Ministry of Finance

The new numbers come at an inopportune time for the Ministry of Finance. At the beginning of October, Marterbauer reported that the deficit target of 4.5 percent could be met. Even then, the minister emphasized, however, that this was only achieved because the federal deficit was significantly lower than budgeted, while the states clearly missed their target. Marterbauer also made it clear that the numbers presented at that time by states and municipalities were essentially based on the values of the first half of the year, hence a certain uncertainty factor was present.

The fact that the mood between the public authorities is currently not the best is also evident from the fact that the negotiations on the Stability Pact, which had already been paused for some time, collapsed on Friday after the states canceled them shortly before for scheduling reasons. A new date is to be found "soon." The states will have the opportunity to discuss this in detail on Thursday and Friday at the Governors' Conference in Styria.

(APA/Red)

This article has been automatically translated, read the original article here.