Budget provision is imminent: What does that mean for 2025?

Budget provision is imminent: What does that mean for 2025?

The new government will be presented on Friday in the National Council, and that brings many innovations with it! The political stage is accompanied by a statutory budget provision that must be approved in order to master the current financial challenges. As the Kleine Zeitung reports, including the constitutional committee, which is dealt with the amendment of the Federal Ministry Act, and the Budget committee that puts an application for the statutory budget provisory on the agenda. Without these measures, the distribution of the budgets and the assignment to the new ministries cannot be made.

But the situation could be worsened! If the MPs do not decide on a statutory budget provision by the end of the year, an automatic budget provisory comes into force that is based on the last legal requirements. According to the Parlament , the contractual upper limits of the Federal Finance Act for 2024 will continue to be valid. This means that the administration can only enter into the expenditure and obligations to the maximum amounts in the course of the year. The maximum limit for 2025 is a fabulous 74.4 billion euros! A financial wire rope act that keeps both politicians and citizens in suspense.

The challenges are huge: Under the new conditions, strict control of the household funds will be necessary to ensure that the funds are not covered. In particular, liability and the requirements for effect orientation will continue to apply. It remains exciting to observe whether the MPs can withstand pressure or whether the automatic mechanism applies and thus significantly influences the financial future of the government.