The budget deficit breaks all forecasts – why is that? – Diepresse.com
Only seven of the 27 EU countries are due to GDP higher than Austria. There were many forecasts for the budget deficit in 2024. And everyone was wrong. The fiscal council came closest. But the deficit ultimately also clearly exceeded its forecast. Why?
The turquoise-green federal government left its successor from the ÖVP, SPÖ and NEOS a fairly large hole in the state budget. That was also known. How big the hole actually is, announced the statistics Austria on Monday. According to preliminary results, the budget deficit was 4.7 percent of economic output (GDP) in the previous year. To classify: The EU Commission had assumed a deficit of 3.6 percent of the BIP in November.
The former finance minister and current migration commissioner, Magnus Brunner (ÖVP), had until the National Council election in September even claimedyou remain below the Maastricht limit of three percent of the BIP-and the fiscal council, which had predicted a deficit of just under four percent. In the end everyone was. With its forecast, the fiscal council was closest to reality. Wifo boss spoke of an « enormous negative surprise » Gabriel Felbermayr. The WIFO itself had assumed a deficit of 4.1 percent last week.
In any case, the ex-government has massively gambled budgetary. While the salary financial statements in the public service, the pension adjustments and the valorization of social benefits have raised government spending – they rose by 8.8 percent – the domestic economy not only has not grown, but also remains in the recession. Domestic GDP shrank by 1.2 percent in the year. Nevertheless, the tax revenues have grown due to the high wage degrees, but with plus four percent significantly weaker than the expenses. To the most part, this explains the massive increase in budget deficit. And also those of the government debt from 78.5 percent of the 2023 GD 2023 to 81.8 percent in the previous year.
Only seven of the 27 EU countries are due to GDP higher than Austria. « The Austrian state was indebted at the end of 2024 with 42,849 euros per capita of the population », illustrated statistics-Austria general director Tobias Thomashow high Austria is debt.
The increased financing costs of the public sector mainly burdened the federal government. The interest expenses for government debt increased by EUR 1.6 billion compared to 2023 in 2024.
Partial sectors are more indebted
Other sub -sectors, such as the countries and communities, also contributed to the deficit. The total state minus was 22.5 billion euros in 2024, after EUR 12.4 billion in 2023. Deficit was held at all levels of the state. The deficits of the state and municipal sector rose significantly by EUR 1.4 billion or EUR 0.4 billion in 2024 and in 2024 amounted to two billion euros or EUR 2.6 billion, the statistics Austria said. The largest proportion of debt growth was in the Federal Sector with EUR 17.6 billion. The deficit in the Federal Sector was reinforced by the other sub-sectors by five billion euros, especially by higher debts in the state and community sector.
The federal capital in particular stands out. The deficit of the state sector without Vienna was a minus of EUR 1.967 billion after a deficit of EUR 558.2 million 2023. The municipal sector was in debt in 2024 with EUR 2.623 billion, with the municipality of Vienna alone contributed 1.671 billion euros. Or otherwise: Without Vienna, the deficit of the municipal sector in 2024 would be EUR 952.3 million and thus even lower than 2023, when the municipalities without Vienna incorporated a deficit of EUR 993.9 million. Vienna’s deficit was 1.275 billion euros in 2023.
Preliminary numbers
Around four out of ten euros that the state spent in 2024 – that is a total of 112.5 billion euros – flowed into social security, of which two thirds went into the category that the statistics Austria with « age ». Only 6.1 percent of social expenditure is spent on unemployment, for example, the post « family and children » costs 10.2 percent of social expenditure. The health expenditure was around 46 billion euros in 2024 and were 6.3 percent above the value of 2023.
As part of the overall economic calculations (VGR), the statistics Austria creates data about the state sector twice a year and publishes it at the end of March and end of September. The appointments are determined by EU regulation, but also reflect that the collection of data takes some time at all state levels. The figures presented on Monday are also only preliminary figures, and the final figures are available in September. According to the statistics authority, not much should change. (Luis)
