Inflation will cost Austria 400 million euros this year. This is evident from figures from Agenda Austria. The state should dig deeper into its pockets for construction projects, pensions and social spending.
In concrete terms, Austria would earn 17.9 billion euros more in the current year, for example due to increased taxes such as sales tax and wage and income tax, but also social security costs. At the same time, additional expenditure would amount to EUR 18.3 billion. This results in a minus of 400 million euros.
The liberal business think tank Agenda Austria refers to figures from Statistics Austria, WIFO and the Tax Council. The calculation is based on an inflation rate of 8.6 percent over the previous year and a forecast for 2023 of 7.1 percent. In the previous year there would have been a billion plus. This time, construction projects, pensions and social spending, among other things, would cause higher costs.
Structural reforms needed
According to Agenda Austria, Finance Minister Magnus Brunner (ÖVP) will have to pay more attention to the anti-inflation measures that will be decided in the future. “The population can afford less expensive watering cans than ever before,” said economist Marcell Göttert of Agenda Austria in a broadcast. Structural reforms are needed, for example in the area of pensions.
In a broadcast, the FPÖ speaks of “not a good reference” for the federal government. “So we have it in black and white: the local population pays twice as much as a result of this policy. Not only should it generate record tax revenues, it should also pay off the new national debt,” FPÖ Secretary General Michael Schnedlitz said in a broadcast.
Among other things, there was criticism of vouchers that would not reduce inflation either. According to the FPÖ, sanctions, reduced or temporarily abolished taxes on energy, fuel and food should be reconsidered.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
