Goal for Budget Deficit Remains the Same for 2026

In absolute numbers, the result will be one billion worse than planned in the coming year. However, due to a higher gross domestic product, the budget deficit remains at the agreed 4.2 percent of GDP with the EU. The federal government contributes 3.2 percent, the states and municipalities 0.9 percent, and the social security carriers 0.1 percent.

Budget Deficit: Federal Government Improves

The federal government improves by 1.1 billion or 0.3 percent compared to the forecast. In contrast, states and municipalities worsen by 1.6 billion or 0.2 percent, with municipalities likely posing the bigger problem. The forecast for social security carriers looks 0.1 percent worse than estimated. That would be around 200 million.

NEOS State Secretary Josef Schellhorn viewed the worsening numbers in the states critically. They need to get out of their "comfort zone." The states need "more ambition," was Schellhorn's "appeal." "We would like to see more happening here," he said after the Council of Ministers on Wednesday. The talks - "I don't want to say pressure" - with the states must be maintained. Because "every lost job is also a lost job for the mayor or the governor."

The FPÖ saw this as a "blame game." "First, the federal government runs the country into the ground, distributes billions for senseless projects, the asylum industry, and abroad, and then the municipalities are supposed to clean up the mess," criticized economic spokesperson Barbara Kolm in a statement.

Marterbauer Knows "No State That Doesn't Save"

Friendly sounded Marterbauer: "I don't know of any federal state that isn't saving." Even if some things should prove difficult, he would continue to maintain his composure, assured the Finance Minister: "I can't imagine a situation where I lose my patience." Thus, despite the "very difficult" situation, he remains optimistic about finalizing the Stability Pact by autumn. Finance State Secretary Barbara Eibinger-Miedl (ÖVP) also believed that the idea of saving had reached the states as well. The federal government will not be able to bear the savings alone until 2028. Overall, however, they are "absolutely on track."

In view of their difficult conditions, the Finance Minister explicitly showed understanding for the municipalities and their proposals to generate more revenue. He could understand all of them. The municipalities had repeatedly demanded, among other things, an increase in property tax. While Marterbauer hinted at sympathies for this, Eibinger-Miedl and Schellhorn were significantly more reserved. The Finance State Secretary pointed out that Austria already has one of the highest tax rates. Schellhorn emphasized that the problem is not with revenue, but with expenditure. However, there was no categorical no from the two either.

Economy helps with budget deficit

The fact that things went better for the federal government than originally planned is mainly due to the improved economy, which brought about 650 million in additional tax revenue. Added to this are 350 million saved by only compensating full inflation for pension adjustments up to 2,500 euros, as well as 310 million from the lower civil servant salary agreement. However, there were additional expenses for unemployment insurance and, for example, more teaching positions and higher doctor salaries. Marterbauer did not question the 300 million budgeted for the flat tax on income alongside pensions. However, the Finance Minister insisted that the regulation should only apply to employees.

The forecasted budget figures will now be sent to Brussels as agreed in the deficit procedure with the EU. This is necessary twice a year. Marterbauer remains unfazed by the procedure: "The process is routine and somehow went very smoothly."

(APA/Red)

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