Austria's budget crisis: Where should the 5 billion euros be saved?

Austria's budget crisis: Where should the 5 billion euros be saved?

Österreich - Austria faces the urgent need to save an impressive 5 billion euros every year in order to reduce the current budget deficits. The deficit is causing concern among the heads of state, since more and more funds for the welfare state and environmental protection are lost. It is urgently asked: where can the state shorten the expenditure? The population has uncertainty about the priorities of the financial budget, while the proposals for austerity measures are getting louder. This discussion becomes intense, since many already subjective opinions about the waste of taxpayers - a topic that moves the minds according to krone.at

high government spending and social challenges

The social security measures represent the largest position in the public budget. In 2019, the expenditure of core and extra-maintenance was around 1,497 billion euros , whereby 679.9 billion euros flowed solely into social insurance href = "https://www.bpb.de/kurz-knapp/Bahlen-und-fakten/datenreport-2021/wirtschaft-und-oeffenter-sector/329740/ outputs-und-s-dieben-defliche- total house. The social benefits, including child and parental allowance as well as the support for day care, considerably burden the budget. In addition, the equipment of the education system plays an important role. Personnel expenses make up a significant part of the entire expenditure; In 2019 they amounted to 308 billion euros , which corresponds to 21 % of the total. The "debt brake", which was decided in 2009, is intended to limit the new debt of the federal and state governments, but is increasingly under pressure in view of the increased expenses.

The increasing spending volume in the social area has led to a debt of around 1,899 billion euros by the end of 2019. This results in high interest and repayment claims that will continue to burden public finances. In order to reduce the deficit and to meet current and future challenges, basic reforms in administration and social expenditure are necessary. Ultimately, it is about capturing the financial "screws" so that the state does not get any further into a debt trap.