Styria begins radical austerity course: 500 million euros savings by 2029!

Styria begins radical austerity course: 500 million euros savings by 2029!

Steiermark, Österreich - The Styrian state government has decided today to have a comprehensive budget timetable by 2029. Finance State Council of Willibald Ehrenhöfer heads this new austerity course, which appears urgently necessary in times of financial uncertainties. A central element of this initiative is the introduction of null-based budgeting (Zero Based Budgeting) from 2026. In the future, the annual budget creation will begin to zero, which will no longer be updated, but completely re-evaluated.

All departments of the country are asked to submit savings proposals by the end of June. The aim of the austerity course is annual savings of up to 500 million euros. These savings should not only relieve the household, but also create scope for necessary investments in the long term. In view of the necessary measures, the state government asks the population for understanding.

long -term perspectives and planning

The new budget approach goes hand in hand with the fact that sales of national assets, including Energy Styria, are not planned for the time being. The Styrian state government has decided to create the financial scope internally through savings instead of relying on external sales proceeds.

The new budget is to be completed by the end of August 2025. This measure is in accordance with the requirements of the European Financial Regulations, which requires regular overviews of budget planning. Article 4 (2) of the Regulation (EU) 473/2013 stipulates that these overviews must be created by October 15 of each year ( bmf.gv.at ).

overall economic context

In view of the upcoming National Council elections in Austria on September 29, 2024, the overview of budget planning for 2025 is now being pre -placed together with the planning for 2026. The draft budget for 2025 is based on data from the overall economic (ESVG 2010) of Statistics Austria and its own calculations by the Austrian Ministry of Finance. In addition, the economic forecast comes from spring 2025 from the Austrian Institute for Economic Research (WIFO).

Overall, the Styrian austerity course shows that the state government is taking new ground in order to stabilize finances sustainably. The measures are particularly important against the background of the sometimes unpredictable economic framework. Further updates and facts on future financial planning are to be expected, while Austria is preparing for the next political steps.