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Creation "Incredibly Difficult", But Double Budget Stands

Die Regierung hat sich auf ein Budget geeinigt.
Die Regierung hat sich auf ein Budget geeinigt. ©APA/GEORG HOCHMUTH
The government has "essentially" agreed on the double budget for the years 2025 and 2026. However, details will remain undisclosed until the budget speech next Tuesday.

This was announced by State Secretary Alexander Pröll (ÖVP) on Thursday afternoon in a press conference. SP government coordinator Michaela Schmidt (SPÖ) added: "We have set up the 6.4 billion."

The two agreed with NEOS State Secretary Josef Schellhorn that creating the budget was a challenging project given the initial situation, but it was handled with trust. The legacy was "incredibly difficult," explained Schellhorn. Schmidt recalled that the extent of the deficit could not even be foreseen at the swearing-in of the government.

Four Basic Principles of Budget Consolidation

Pröll mentioned four main directions that were considered in the budget creation, the "largest package of the last decades." On one hand, it is about "performance instead of over-subsidization," then about a "fair consolidation," the attempt to invest in the country's future, as well as reforms in structure and administration.

Pröll emphasized that this year the public administration contributes 1.1 billion and next year 1.3 billion to the consolidation of the budget. It remained open whether the agreed increase in civil servant salaries above inflation could be untied. Pröll referred to the words of Chancellor Christian Stocker (ÖVP) from Wednesday, who had kept all options open. Regarding the personnel level, it was emphasized that there should not be more positions overall.

Belief in Administrative Reform

Schellhorn expressed confidence that progress would also be made in administrative reform. The chairman of the state governors' conference, Wilfried Haslauer (ÖVP), and the head of the municipal association, Johannes Pressl (ÖVP), had confirmed their willingness to reform: "A lot of confidence has been generated." Right after the budget, the "clearing of the subsidy jungle" must be tackled: "We need to cut through it with a machete."

For Schmidt, it was essential that steps were also taken on the revenue side: "Our concern was that everyone should contribute a fair share," the state secretary referred to the special tax for energy companies and the bank levy.

They were too generous with climate bonus and educational leave

Pröll admitted that in the past they had probably been too generous in some matters and cited the climate bonus and educational leave as examples. The former measure alone brings in two billion.

The global figures remain unchanged. This year, the savings volume is expected to be 6.4 billion euros. Next year, an additional 8.7 billion is expected to be added.

No new details were mentioned on Thursday. Pröll pointed out that the legislation still needed to be finalized over the weekend.

(APA/Red)

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

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