Carinthia's budget crisis: 40 million euros less from Vienna!

Carinthia's budget crisis: 40 million euros less from Vienna!

In a worrying turn in the Carinthian state parliament, it becomes known that the federal funds are 40 million euros lower than expected. The SPÖ faction announced this and addressed the precarious financial framework conditions, which are tightened by the economic weakness phase of the federal level. As Klick-kaernten.at , the costs for the recently decided salary increase of the state officials must also be integrated into the budget. This leads to increased financial pressure, since Carinthia's net debt is expected to increase by around ten percent. SPÖ club chairman Herwig Seiser criticized the late flow of information on the part of the federal government and described the situation as "irresponsible".

Federal Finance Report shows deficit

In addition, the current figures of the Federal Ministry of Finance illustrate that the financial situation not only affects Carinthia, but that the all -German budget is deficit from a deviation of 23.6 billion euros for the first half of 2024. For example, the federal government rose 8.3 percent compared to the previous year, but expenses remain problematic, with a decline in the investment expenditure of 12.2 percent, such as bundesfinanzministerium.de

The nationwide income is strongly based on the tax revenue, which, however, are under pressure to be distributed to the federal states and municipalities by an unequal distribution of financial resources. This is still exacerbated by the additional funds necessary to support the salary increases in the state institutions. In view of these developments, the question arises as to how the federal states will continue to plan their households in order to meet the growing financial challenges.