This is the Estimate for the Vienna Budget 2026

The estimate for the Vienna budget 2026 is available. As the office of Finance City Councillor Barbara Novak (SPÖ) informed the APA, the total debt level of the city according to the draft will rise to 14.89 billion euros. The deficit will amount to 2.63 billion euros. Revenues of 19.51 billion euros are offset by expenditures of 22.14 billion euros. According to City Hall, the fact that Vienna is putting together a savings package and has already taken consolidation steps is already having an effect.

Budget Estimate 2026 is Here

The key points of the budget for the coming year were presented some time ago. Today, Friday, the final estimate, which will be voted on in December, was published. Once again, it contains increased liabilities. In 2024, financial debts according to the financial statement amounted to 11.9 billion euros. There are no official figures for this year yet, but a significant increase is expected.

According to the draft, this trend will continue next year. The lion's share of expenditures in 2026 is again found in the health and social sector at 33 percent. 23 percent is allocated to education, 9 percent to the environment, and 4 percent to the housing and women's department. For the transport and culture sectors, 2 percent each is reserved. The rest is allocated to administration, the magistrate's directorate, and the financial sector.

The economic conditions are challenging, and forecasts for the federal government's revenue shares are unreliable, emphasized the office of the Finance City Councillor to the APA. Rising energy and personnel costs were also cited. However, the additional demand has already been reduced, it was said. The city has started early with the rehabilitation of the budget and will reduce the projected deficit by around 600 million euros.

How High is Vienna's Deficit?

Specifically, according to current calculations, the execution will likely result in a deficit of 3.25 billion euros this year. This is significantly above the values expected in the double budget 2024/25. However, at the beginning of the year, a deficit of 3.8 billion euros was still expected. Through savings measures, the deficit is to be further reduced by approximately 600 million euros next year. This is to be achieved with measures that are largely already known - and which have partly caused considerable attention.

For example, the housing subsidy contribution and the prices for public transport tickets will be increased. The 365-euro annual ticket will soon be history. The local tax will also be raised in the middle of the year. At the same time, there are cuts in minimum security and construction projects. Thus, the U5 will start operations several years later than planned. According to the Novak office, subsidies and grants in the departments will be reduced by around 10 to 15 percent overall.

Savings, it is assured, will be socially acceptable. For example, municipal kindergartens will remain free of charge. Free lunch in all-day schools will also continue to be available. Investments in climate and environmental projects or training initiatives, for example, will continue to be made.

In the town hall, it is also pointed out that Vienna will contribute more than half to the total deficit reduction of all states in the coming year - when comparing the Maastricht deficit results of the federal states. It was also emphasized once again that comparing the state budgets is difficult because Vienna is both a state and a municipality. The deficits of the municipalities are not included in the budgets of the other states, it is noted. As far as per capita debt is concerned, Vienna is in the middle range.

Debate and Decision in December

The figures for the coming year will be debated and decided in the municipal council on December 16 and 17. The budget for 2026 is "mindful, efficient, and socially balanced," Finance Councillor Novak was convinced. At the same time, it also ensures financial stability. For Vienna, budget consolidation and social cohesion go hand in hand. "Behind every number is a service, behind every service a person."

The economic spokesperson for NEOS, Markus Ornig, reported that "every stone" had been turned to examine savings measures without increasing the burden on citizens. He was pleased that the city was setting the right priorities and continuing to invest in education and the economic location, Ornig stated in a statement.

What the Opposition Says

The FPÖ identified "red-pink financial failure" in a reaction. For party leader Dominik Nepp, the "touted" consolidation steps are "pure eyewash," as he noted in a release. He saw a real saving in the elimination of minimum security for non-Austrians. However, he believed that fee increases alone could no longer conceal the financial disaster: "Without an immediate change of course and a real reform program, Vienna is in danger of sliding unchecked into insolvency."

The Greens also remain critical. "The SPÖ has lost its social compass and is currently squandering the legacy of red Vienna. This budget is unfair, unsocial, and irresponsible," said party leader Judith Pühringer. They are setting completely wrong priorities, such as delaying the subway expansion and increasing ticket prices. Funds for climate protection have also been cut.

"The figures presented today mercilessly show that the SPÖ-NEOS city government has long since lost all sense of budget discipline," stated the state party chairman of the Vienna ÖVP, Markus Figl. Vienna is the sad leader in debt across Austria. What is needed now are real reforms and strict expenditure control.

(APA/Red)

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