Hanke announces billions of investments despite savings package!
Hanke announces billions of investments despite savings package!
In the middle of a comprehensive savings package, infrastructure minister Peter Hanke (SPÖ) has nevertheless announced considerable investments in the Austrian rail and transport network infrastructure. Despite the need to save almost 400 million euros in the next two years, the investment amount for the rail remains annually with remarkable 3.2 billion euros. In addition, over 1.5 billion euros are planned for ASFINAG and 600 million euros in the research area. Hanke confirmed that discussions about the affected routes of the ÖBB savings measures are currently ongoing, but there are still concrete decisions, such as OE24.at reported.The realignment of the funding also affects the transport sector. Despite a planned price increase, the climate will be preserved in its current form. However, the funding for e-cars experiences a drastic reduction, which Hanke regrets, but recognizes the continued use of petrol and diesel cars in Austria. There is also a decision on the controversial lobstunnel in autumn, based on the current documents.
savings package and financial requirements
In parallel to these measures, the government presented an extensive savings package under the pressure of EU deficit procedure. Finance Minister Gunter Mayr and budget spokesman for the FPÖ, Hubert Fuchs, stated that savings of 6.4 billion euros are sought for this year. A central point of the savings package concerns the cancellation of the free ticket for 18-year-olds and the expansion of digital tax. The climate kit is preserved, while the adaptation of the pension accounts is not planned. The government thus illustrates that the necessary savings will not be carried out without loss of social benefits, such as [derStandard.at] (https://www.derstandard.at/story/3000000253123/Blau-schwarz-praesentiT- Sparpaket-Klimabonus-Faellt-e-e---20-Prozent-Der-Foerungen-Fallen) reports.The Presented measures include the abolition of sales tax exemption for solar systems and the increase in e-cars that are included in the engine-related insurance tax. These steps are expected to generate total income of 1.24 billion euros in 2023, while the bank levy is also to be increased. Experts see this a narrow line between financial necessity and social justice.
more details and measures
In addition, the child's deduction amount will continue to be laid down at 67.80 euros per child and month in 2026 and 2027, which is done without automatic inflation adjustment. An increase in health insurance contributions for pensioners from 5.1 to 6 percent from June will also be planned. However, in order to clever the financial burdens, the government plans to exemption from a tax exemption for women's hygiene items and contraceptives as well as the introduction of a tax-free employee premium of 1,000 euros per employee for 2025, such as today.at shown.
The necessary savings, however, make the ministries noticeably, which have to save a total of 1.1 billion euros. The savings are distributed at 40 percent to VP and SP departments and 20 percent to the NEOs. Ultimately, it remains to be observed how these measures are affected by the Austrian population and which reactions will follow in the political landscape.
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