Carinthia halved deficit: successful austerity measures or propaganda?

Carinthia halved deficit: successful austerity measures or propaganda?

The Carinthian state government has made significant progress in housekeeping in recent months. According to Klick Kärnten , the budget outcome was halved from almost 500 million euros to around 250 million euros. SPÖ finance spokesman Günter LeiMam found that savings and adjustments show the first positive effects, although the opposition sharply criticizes the implemented measures.

compared to other federal states, Carinthia does relatively well: While Styria calculates with a deficit of just under one billion euros and Salzburg expects a minus of half a billion euros, Carinthia is pursuing a stronger course of the budget discipline. However, the debt is high and, according to a report of the Kleine Zeitung Again the four-Milliarden-EURO brand, despite a new debt recorded for 2024 252 million euros.

background of the debt load

Current debt development has its roots in the past when the debt under the FPÖ financial management increased from around one billion euros in 2002 to over three billion euros in 2012. In the past ten years, however, Carinthia has achieved five budget surpluses and has reduced the Hypo disaster, which was loaded with liability of 24 billion euros, to less than two million euros.

Despite the tense economic situation, in which economic growth is -1.2 percent and inflation are 2.9 percent, the state continues to invest in construction projects, residential construction and renovations. The finance officer Gaby Schaunig emphasized that increasing expenses, especially for health, care and personnel, are part of the financial challenges.

political measures and the future outlook

Carinthia's politics focuses primarily on financial relief for people with low incomes. The living allowance was doubled and the parental contribution -free kindergarten is retained. The balance between expenditure reduction and the support of the population is highlighted by Leamkam as centrally. At the same time, it is warned that construction prices are delaying projects, nevertheless work for future generations.

Carinthia's efficiency and stability is also confirmed by the best rating in national history (AA2), which indicates a positive development. This economic context is particularly relevant because the reports of the fiscal council on public finances show that high budget deficits are expected in the coming years due to economic policy without counter -financing. The forecast of the fiscal council indicate that considerable consolidation efforts are required to ensure compliance with the EU-wide fiscal rules.