Austria's budget in the crisis: planned 1.25 billion euros in renovation!

Austria's budget in the crisis: planned 1.25 billion euros in renovation!

Austria is currently facing a serious financial challenge. In response to the overall -state deficit of 4.7 percent in 2024, which was well above the forecasts of economic researchers, the federal government initiated a comprehensive budget renovation course. This was done against the background of a weak economic situation and a complex international political situation, which have negative effects on the budgets of the federal, state, communities and social security.

On May 2, 2025, the Federal Ministry of Finance announced that measures of almost 1.25 billion euros were decided in the first week after the angry. These measures are part of a parliamentary process for the double budget 2025/2026, which provides for a renovation of 6.4 billion euros for 2025 and 8.7 billion euros for 2026. Finance Minister Markus Marterbauer will hold a budget speech on May 13, 2025 to explain the details and goals of the initiative.

planned measures

The federal government plans a number of tax adjustments to promote tax justice without burdening the economy. The main measures include:

• Tax adjustments in large real estate transactions (Share Deals)
• transfer surcharge for property sales
• raising the foundation entrance taxes
• increase in gambling tax
• suspension of the inflation adjustment of the income tax tariff and the child deduction amount for 2026 and 2027
• Mandatory electronic delivery via financial byline for entrepreneurs subject to VAT
• Adjustment of the investment deductions within the framework of energy crisis contributions

The total volume of these measures amounts to 76 million euros for 2025 and 696 million euros for 2026. In order to relieve the citizens, there are also various measures, such as increasing the commutereuros from 2 euros to 6 euros per kilometer and a tax -free employee premium of up to 1,000 euros per employee in 2025.

joint efforts for renovation

The federal government underlines the need for a total state of strength to renovate state finances. State Secretary for Finance, Barbara Eibinger-Miedl, is committed to confidence and cohesion, while State Secretary for Deregulation and Depereaucratization, Sepp Schellhorn, indicates joint action to strengthen the business location.

In comparison with the savings plans of FPÖ and ÖVP, which aim to reduce the budget deficit to around 3 percent, drastic savings of 6.39 billion euros were also considered. These comprehensive measures include the deletion of the climate monus and cuts in green subsidies and in the social area.

The government faces the challenge of achieving additional savings while economic growth has decreased. Possible solutions could include increasing taxes, savings packages or combating inflation. This requires long -term planning to boost the economy and stabilize the state finances while the challenges of the current crises are addressed.

The upcoming reforms in areas such as administration, reduction in bureaucracy and health will remain very important in the coming years to ensure economic stability and to counteract future loss of wealth. As the Federal Government emphasizes, the promotion of growth and the support of the economic engine remains at the center of its efforts.

For detailed information about the budget renovation and other measures, the article can be found on OTS , bmf and Staatsulden.at