The Fiscal Council recommends that the government “carry out a more ambitious fiscal trajectory”. The temporary, crisis-related measures should come to an end as planned and all economic policies should be counter-financed within the framework of the current budget – the only exception to this should be “investments in the future”, for example in the field of climate protection.
From the committee’s point of view, no budgetary resources are currently needed to support economic development, the chairman of the fiscal council, Christoph Badelt, stated on Tuesday at a press conference on the topic of “Austria’s medium-term budget path”. It is necessary, among other things, to increase cost efficiency in healthcare.
space is important
In order to face possible future crises and to cope with the numerous challenges (economic, health, climate and social policy), it is essential to regain fiscal space – i.e. to reduce the government debt ratio quickly and sustainably. “We need budgetary leeway,” said Badelt.
As an example, the president cited risks related to climate protection – “albeit that you have to buy additional certificates”. Badelt also pointed to the demographic change that will be reflected in pensions, healthcare and healthcare expenditure. To create this scope, an increase in cost efficiency in healthcare as part of the new financial equalization is a necessary contribution.
The demographically driven, sustained increase in public spending on health care needs to be countered with improvements in the organization of health care services and with a “sustainable financing model”.
In addition, the Budget Council opposes “extraordinary legal interventions” in the pension system, which would jeopardize the sustainability of the pension system and thus also that of public finances.
Further climate action needed
The advisory body calls for further measures in the field of climate. The scope of the measures taken so far is not sufficient to meet Austria’s EU emission targets. Therefore, high costs for the purchase of emission certificates and fines are to be expected. As a result of climate change, further budgetary costs and risks must be taken into account – for example, the economic effects of extreme weather events or investment costs to avoid them.
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.
