Salzburg's financial miracle: From the mega deficit to unexpected additional income!

Salzburg's financial miracle: From the mega deficit to unexpected additional income!

The city of Salzburg has experienced a positive surprise in its financial situation: Instead of a violating budget deficit of 93.8 million euros for 2024, as originally predicted, only a minus of 5.9 million euros is now expected. The city senate announced this on Monday during the presentation of the fourth quarterly report. Mayor Bernhard Auinger (SPÖ) said that this massive deviation was due to pleasant additional income and lower investments that relieve the urban budget. In particular, the additional income from the future fund elementary pedagogy (nine million euros) and local tax (eight million euros) contributed significantly to how Salzburg24

The positive budget result also means that the city can do without new debts. Instead, 4.7 million euros in existing loans were repaid last year. Mayor Auinger emphasized that urban finances are so stable that the city could survive the next two years with the existing means without having to take out new loans. This is particularly important to secure the city's financial ability to act, even if he criticized the inaccurate budget planning of the past few years. "With the existing means we can get through the next two years," says Auinger.

Sustainable changes in the budget process

To avoid future inaccuracies, Auinger plans to make the budget process more transparent. It is important to him that all departments comply with binding budgets and that additional income can be better budgeted at the beginning of the year. The city has invested less in recent years; In 2024, only 76.3 million euros were implemented instead of the intended 107.3 million euros. The S-Link project, which represents a greater financial burden with 1.9 million euros compared to the planned 18 million euros, also played a role in the budget calculations. Other topics of the city council about the city partnership with Mühldorf am Inn could promote future exchange and have so far been unanimously accepted.