Austria's budget deficit 2025: A huge debt is threatened!

Austria's budget deficit 2025: A huge debt is threatened!

Österreich, Land - In Austria, the budget deficit for 2025 is corrected again. The President of the Fiscal Council, Christoph Badelt, announced in a Podcast of ORF that the new budget figures will soon be published. According to Badelt, the deficit is greater than previously expected. However, specific figures have not yet been given. In November and December of the previous year, the fiscal council forecast a deficit of 4.1 percent of gross domestic product (GDP) for 2025.

In addition, an increase in debt rate in Austria is expected. A debt rate of 81.6 percent of GDP is forecast for 2025, which is well above the Maastricht reference value of 60 percent. This suggests that Austria has to prepare for an EU deficit procedure in order to meet the requirements of the European Union. These developments raise questions about the sustainability of public finances.

older forecasts and their effects

The analyzes and forecasts of the fiscal council, which are contained in the regular reports on public finances, show that the budget situation is under great pressure through economic policy measures without adequate counter -financing and increasing inflation. As can be seen from the report on the public finance of Austria , it may be expected with further high budget deficits. In the Fisk Year's Report 2023-2028, a continued high debt rate is assumed for the period until 2028.

The Fisk annual report is published annually in mid-December and is a comprehensive overview of Austria's public finances. It contains points such as the direction of public budgets and the republic's debt management. The report is sent to the Federal Minister of Finance and the National Council, which is why it plays an important role in the political discussion.

fiscal rules and future challenges

A central concern in the report is compliance with both EU wide and national fiscal rules. The fiscal council emphasizes that compliance with the new EU fiscal frame required high consolidation effort during 2025 to 2028. This challenge becomes clear against the background of an overall deteriorated budget situation and a change in revenue and expenditure structure.

The forecasts of the fiscal council are more pessimistic than that of the Ministry of Finance; This raises questions about the provinces about the causes of the different assessments. In view of the robust income development in 2023, there could still be a certain buffer for the upcoming financial challenges.