“The Austrian Government’s Planned Fiscal Consolidation is Unlikely to Stabilise General Government Debt-To-To-To-Gdp Without Further MeASures”, – WRITE: www.fxempire.com
Structural Nature of Rising Public Spending, Inflation Complicates Effrts to Tigten Expenditure Controls Growth in Austrian Public Spending Last Year (Up 8.7% From 2023) Continued to Surpass Increases in Revenue (Up Only 4.9%) As Higher Welfare and Public Measures Designed to Protect Households and Business from the Cost-of-Living Crisis.
Austria’s Budgetary Challenge Partly Stems from Fiscal Slippage at the Provincial and Local Levels. Planned Consolidation Over 2025–2026 Relies Mainly on Cuts to State, Local and Social Security Budgets; The Central Government’s Deficit is Expert To Remain Stable. However, Sub-Sovereign Governments Also Face Fiscal Pressures, Notable from High Staffing Costs.
Structural SPEENDING RELATED TO AUSTRIA’S AGEING Population Represents Longer-Term Pressures on Public Finans, The Respons to Which Will Require Streamling Head. The Government Estimates that Pension Costs Will Rise to Eur 38.2bn (6.7% of GDP) in 2029 from EUR 30.0bn (6.2% of GDP) in 2024.
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Eiko Sievert is an Executive Director in Sovereign and Public Sector Rathings at Scope Rathings. Elena Klare, Analyst in Sovereign Rathings at Scope, Contributed to Draft This Research.