Budget 2026 is being discussed in the Vienna City Council

As expected, the figures were intensely discussed. According to the draft, the deficit will amount to 2.63 billion euros next year. Revenues of 19.51 billion euros are offset by expenditures of 22.14 billion euros. Extensive austerity measures have already caused a stir and criticism in advance.

These include, for example, price increases for public transport fares or cuts in minimum security. Numerous fees, housing subsidies, or the local tax will also rise. However, a red pen was applied to a number of subsidies. Protests, for example from social organizations, also took place at the City Hall before the start of today's session.

Debate on the 2026 Budget in the Vienna City Council

Finance City Councillor Barbara Novak (SPÖ), who took office after the election in the spring and delivered her first budget speech today, did not hide at the beginning of her remarks that the debate had "gained some momentum" in recent weeks and months. The tense overall economic situation has led to revenues not keeping pace with rising expenditures. She lamented that, above all, the federal revenue shares were declining.

This affects all federal states, where there are also different approaches to consolidation. Fee increases are almost everywhere on the agenda. However, some states are also selling housing subsidy loans or stakes to bring money into the coffers. Others are shifting costs with outsourcing or discontinuing projects. In Vienna, a different path is being taken, Novak explained.

This is a "balancing act." "Yes, there are cutbacks," she admitted. The budget is being financed, but the provision of essential services is also to be maintained. The high level of healthcare, for example, should remain. And there is strong investment in the location. "This budget is clearly a budget that strengthens Vienna's economy." At the same time, there is a desire to reduce the deficit.

Demands on Property Tax and Maastricht

However, she emphasized that 44 percent of all revenues are profit shares, which are not increasing strongly enough. She referred to the demand from the Association of Cities and Municipalities to increase property tax. Additionally, it is necessary to exclude investments in social infrastructure from the Maastricht deficit criteria. Possible sanction procedures and additional costs could thus be prevented, the department head was convinced. Corresponding resolutions have already been passed by the Conference of Provincial Governors.

In her speech, Novak highlighted that economic growth in Vienna is higher than the national average. One of the major strengths is tourism. At this point, she also mentioned the Song Contest, which will take place next year at the Stadthalle. "Unfortunately, this major cultural event has become a major political issue." However, she is convinced that Vienna will be a great host. And she emphasized: "We know that the ESC will also generate a very high added value for tourism in the following years."

NEOS: Consolidation Necessary

NEOS club chairwoman Selma Arapovic spoke of a necessary consolidation plan. This consists of one-third new revenues and two-thirds savings. "I know, both are unpleasant." But they know the situation they are in. The goal is to burden the population as little as necessary. They also did not want to increase revenues across the board. The level of services in the city, such as in the areas of education, health, housing, or mobility, should be maintained.

Revenues would be moderately increased, assured Arapovic. Savings would also be made in administration and politics. She referred, among other things, to the recently decided zero wage round for people with political mandates.

FPÖ Criticizes "Self-Inflicted Disaster"

The opposition, as expected, did not have anything good to say about the draft in today's debate. "This budget is not a one-time operational accident," stated FPÖ state chairman Dominik Nepp. Rather, it is a "self-inflicted disaster." The plan by Mayor Michael Ludwig (SPÖ) to cover the deficit with federal budget funds has not worked out. They have also actively broken election promises, such as with the 365-euro annual ticket. "That was deliberate deception and cunning."

The red-pink coalition is not willing to reform and does not want to save within the system. Fees are always just increased. This is expected to generate 60 million euros in additional revenue. "That is just a drop in the ocean in a billion-dollar debt disaster," Nepp was convinced. Vienna shows no willingness to save, for example, in minimum security.

Greens Against Unsocial Savings

Green Party leader Judith Pühringer was astonished by the city government's assurances that savings were being made in a socially balanced way. "I must strongly disagree with them here," she said. The budget is rather inefficient, unsocial, and unjust. "The promise to leave no one behind in this city no longer holds." The Vienna SPÖ is cutting the last social safety nets.

But savings are not only being made at the expense of the poorest. For instance, district heating prices are exploding, and the 365-euro annual ticket is being abolished. At the same time, the expansion of public transport is being sidelined. The SPÖ has completely lost its social compass, Pühringer lamented.

ÖVP Misses Budget Discipline

The club chairman of the Vienna ÖVP, Harald Zierfuß, also identified only "sugarcoating" from SPÖ and NEOS. "This budget does mainly one thing, creating new debts in the billions." The Viennese way actually means paying out too much money and thinking that the next generations will pay it back.

Zierfuß spoke of a self-abandonment of budget discipline. They are robbing young people of their future. "That is shabby, that is wrong." He noted that the federal government's revenue shares have always increased. The list of savings in Vienna, however, is short.

After the so-called general debate, the treatment of the individual business groups was on the agenda. The decision on the budget draft will be made on Wednesday - presumably in the late evening hours.

(APA/Red)

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