No Adjustments Planned for Budget

Finance Minister Markus Marterbauer (SPÖ) and State Secretary Barbara Eibinger-Miedl (ÖVP) emphasized on Thursday that they want to maintain the consolidation path. Further measures are not planned, as these would be sufficient, explained Marterbauer, who expects a higher deficit than predicted by Wifo and IHS.

Budget: EU Deficit Procedure "No Drama"

"The situation is very serious," the Finance Minister began his statement at the joint media event in light of the third year of recession. We are in an "exceptionally long phase of economic downturn." Regarding the forecasts published on Thursday by Wifo and IHS, his suspicion is that the economic research institutes "significantly underestimate" the deficits of municipalities and states. Therefore, one must wait for the data published by Statistics Austria on Monday. An EU deficit procedure, which is likely inevitable, was again described by Marterbauer, referring to corresponding statements by Federal President Alexander Van der Bellen, as "no drama." Primarily, a deficit procedure would mean a stronger exchange with the EU Commission. It is expected that the decision on this will be made at the EU level in June or at the latest at the beginning of July, according to Marterbauer.

No Timeline Yet for Budget with Deficit Below Three Percent

The goal is to reduce the budget deficit below the Maastricht limit of three percent as soon as possible, emphasized Marterbauer and Finance State Secretary Eibinger-Miedl in unison. Whether this will be achieved by 2026 is uncertain. He can only say this after the creation of the double budget, which is to be presented in May, according to the Finance Minister. They have "reached out" to federal states, municipalities, and social insurance carriers to achieve budget consolidation together. "We can only consolidate the budget together," Marterbauer appealed. Where he sees specific savings opportunities in states and municipalities, he did not want to dictate to them. "A nationwide effort is needed," Eibinger-Miedl also emphasized.

Budget: Key for Savings in Departments Set

Marterbauer reported progress in negotiations with the ministries. In the initial discussions, they agreed on the key for the distribution of a total of 1.1 billion euros in material costs. How the distribution, i.e., which ministries should contribute slightly more than the targeted 15 percent and which slightly less, is confidential. Despite differing forecasts from the Austrian National Bank (OeBN), Marterbauer was confident that the planned measures would achieve the savings target of 6.4 billion for this year. "Of course, there are some uncertainties," such as in educational leave or taxes, but he is nevertheless optimistic.

(APA/Red)

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