Budget consolidation: billions of savings and new tax plans!

Budget consolidation: billions of savings and new tax plans!

Ort, Österreich - The Austrian government has decided to consolidate the budget. According to oe24 this year is to be saved this year, followed by 8.7 billion in next year. The central measures include the climate monus that was introduced without replacement of the climate monus, which was introduced in 2022 as compensation for the CO2 tax, and the abolition of educational leave. The government is also planning to increase the bank tax to achieve an annual 500 million euros. As part of these measures, the stability tax for banks is also raised to an original level in 2026.

The income should be increased by changes in existing taxes. In particular, the suspension of the “variable third” of the cold progression, which is to bring an additional 600 million euros into the coffers, is strongly lifted in the foreground. Kleine Zeitung also reports that the increase in the health insurance contribution for pensioners is planned to 6 percent to cover new expenses. The savings should serve to press the budget deficit below the Maastricht limit of 3 percent of GDP, and are part of a larger plan to save a total of 18 billion euros by 2029.

comprehensive reforms in the tax system

The government also relies on tax reliefs, especially for companies and the self -employed to boost the economy. The planned changes include increasing the profit allowance and raising the minimal depreciation amounts for company vehicles. In addition, tax benefits for overtime and surcharges should be introduced. A sales tax exemption for hygiene items and contraceptives from 2026 is also being planned. This is understood as a measure to reduce the financial burden for women.

One of the most controversial measures is to increase federal fees by 44 percent, which is particularly noticeable in services such as the exhibition of passenger passes. These reforms are part of a comprehensive plan to renovate the budget and at the same time promote investments as well as necessary social measures. The way to save it is clear, but the political debates about the financial burdens are anything but ended. The ÖVP, SPÖ and Neos, which form the triple coalition, now have to develop precise measures together to achieve the goals set.