Vienna's Budget Deficit Was Actually Lower

Originally, a deficit of 2.24 billion euros was budgeted for the previous year. It is unlikely that this trend will continue: As recently announced, the deficit is expected to be higher in 2025 than planned.

Vienna's Budget Deficit Significantly Lower

It was stated in a city hall release that despite the recession or even flooding last year, they managed the finances "solidly." Thanks to "forward-looking and liquidity-conserving security measures," the budgeted deficit in the preliminary budget (double budget for 2024/25, note) was reduced by around 500 million euros, it was highlighted.

As a result, the new debt was also correspondingly lower, it was emphasized. Overall, the financial debts of the municipality now amount to 11.9 billion euros. However, with assets of 37.8 billion euros or reserves amounting to 1.4 billion euros, they have a good financial cushion, it was assured.

Nearly 20 Billion Paid Out

A total of 19.9 billion euros was paid out last year. According to city hall, the areas of social services, health, education, as well as childcare and public transport were once again the focus of expenditures. Here, a total of around 11.4 billion euros in inflows was recorded.

Specifically, 3.3 billion euros were invested in social services and 3.1 billion euros in health. There were 2.6 billion euros for education and 1.2 billion euros for kindergartens or childcare. Around 1.2 billion euros were spent on public transport.

Nevertheless, it was emphasized that a sustainable consolidation of the budget is necessary. This is due to the "enormous revenue declines" as a result of the economic crisis and the tax policy measures largely decided by the former federal government without counter-financing, it was reported. The high expenditures due to inflation were also highlighted.

Warning from Hanke

The former City Councillor for Finance, Peter Hanke (SPÖ) - who has since moved to the federal government - warned a few weeks ago that 2025 might turn out worse than planned, unlike 2024. The forecast was revised from 2.3 billion euros to 3.8 billion euros deficit. However, savings measures have not yet been communicated.

This is likely due to the fact that SPÖ and NEOS are currently negotiating the continuation of the coalition and thus the future priorities of government work after the Vienna election. The finance department is currently only temporarily filled. It is temporarily led by the previous finance director Christoph Maschek, who will resume his old position after the government is formed.

When the debate on the 2024 financial statement will take place is exceptionally still open this year. Usually, the corresponding meeting of the municipal council takes place at the end of June. Presumably, this will be the case again this time. However, the inaugural meeting of the municipal council must take place first. Since there is no date for this yet, it has not yet been determined when the financial statement will be addressed.

Financial Statement No Cause for Celebration for Opposition

The opposition sees no reason to celebrate in the now available financial statement. This clearly shows that Vienna is continuing to fall into a worrying financial imbalance, said the financial spokesperson of the Vienna People's Party, Manfred Juraczka. Although the result is about 500 million euros below the forecast, the new debt is the highest deficit in the city's history: "That this result is still considered a success is surprising."

"The figures presented today for the Vienna financial statement are once again mere embellishment by the city government under the leadership of SPÖ Mayor Ludwig," said Vienna FPÖ leader Dominik Nepp. The true extent of the "red-pink debt policy" will only become apparent upon closer analysis, he speculated. The FPÖ, he announced, will therefore scrutinize the financial statement down to the smallest detail.

SPÖ municipal councilor Kurt Stürzenbecher, on the other hand, praised the figures presented today. "The 2024 financial statement shows that we in Vienna are not only navigating through difficult times but are also able to put our city on a sustainable footing," he emphasized in a press release. Despite global crises, financial policy has been consistently continued, and important investments have been made in the quality of life for all Viennese. "The financial statement for the fiscal year 2024 once again shows that Vienna remains on a solid course."

(APA/Red)

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