Politicians are repeatedly tempted to decide on the “benefits” of the electorate before the election. All too often these sweets turn out to be bitter pills. The resolutions of the last four National Council elections alone now cost more than the entire federal army.
If this sweet delicacy had not existed, the budget would meet the Maastricht criteria of a deficit of a maximum of three percent. Instead, there is a risk of an exceedance of 0.5 percent. President of the Budget Council, Christoph Badelt, urgently warns politicians against such election gifts: no measures should be taken whose financing is completely confused, “because that will end in a major deficit”.
Total costs 31 billion euros
The Budget Council has analyzed all electoral treaties since 2008 and calculates that they have cost a total of €31 billion so far. This year alone there are 4.1 billion. That’s more than the entire army and police, which cost four billion each.
Next year it will cost five billion
Four billion is also more than Austria earns from the tax on mineral oils (also four billion). This comparison is drawn by the Neos, who did not participate in these decisions in parliament. Lukas Sustala, head of the Neos Lab: “In 2024, Austria will spend almost four times as much money on past election sweets as on the future fund. In 2026 this will be more than five billion euros. This shows the complete forgetfulness of the future of populism in the election campaign.”
The most expensive electoral treats have always been measures in the social sector, such as the valorization of healthcare allowances in 2019, which cost 515 million this year, or the increase in the road tax discount and the refund of social premiums to 500 million. In third place is the reduction in sales tax on medicines in 2008, which will cost us 490 million this year.
2019 was the most expensive year
The most expensive year in that regard was 2019, when turquoise blue fell apart in Ibiza. The measures taken at the time worsened the budget balance today by 2.2 billion euros. The election bonuses from 2008, 2017 and 2013 will burden the 2024 budget with 1.1 billion, 0.6 billion and 0.2 billion euros respectively. They consist largely of an increase in expenses. The Fiscal Council calculates that election sweeteners in the form of increases in pension expenditure will account for around a third of the total sweetener burden since 2008 by 2024.
There are countless suggestions for election gifts
Given the enormous inflation in recent months, the parties have plenty of ‘aid proposals’ in their drawer that would put additional pressure on the budget – from reducing or temporarily suspending VAT on food, energy and fuel to abolishing CO2 tax. The budget guardians of the Fiscal Council can only hope that the boxes remain closed.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
