The black-blue state government of Salzburg presented its state budget for 2025 on Tuesday, worth more than 4.4 billion euros. Despite the sluggish economy, declining tax revenues and an explosion in salaries and material costs, it is not an austerity budget, but a “consolidation budget with strong economic stimulus measures,” emphasizes financial officer and governor Wilfried Haslauer (ÖVP). To do this, the country will take on 475 million euros in new debt.
To combat the economic downturn, 680 million euros will be invested next year, which will mainly benefit the construction sector, Haslauer said. In 2025, 190 million euros will flow to new housing subsidies, 108 million to the state service center currently under construction at the central station, and almost 100 million to the expansion of the local railway and the purchase of new train sets. This item also includes the 13.8 million euros that will be earmarked for the planned regional light rail S-LINK next year. In 2025, 40 million euros each will be reserved for hospitals and cultural buildings, such as the renovation of the festival halls.
More money for social services and care
The budget increase is significant in the health and care sector, which, with an increase of 154 million euros, is now worth 1.34 billion euros. There is also more money for social services and childcare. In the social sector, 693 million euros have been reserved, an increase of 37 million euros. This means that the areas of health and social affairs now account for half of the state budget.
Financing in sight
“But we don’t want the country to be pushed into an immeasurable level of debt,” Haslauer explains. Therefore, the state government has prescribed a roadmap for the coming years. In 2026, the new debt may amount to a maximum of EUR 350 million, a maximum of EUR 250 million in 2027, a maximum of EUR 150 million in 2028 and a maximum of EUR 100 million in 2029. “By 2029, the country’s total debt should not exceed three billion.” The governor also emphasized today that the 2025 budget was achieved without a tax increase.
“If the circumstances were different, we could get closer to a balanced budget,” said Deputy Governor Marlene Svazek (FPÖ) confidently. And she announced that she would mainly monitor the effectiveness of the many subsidies. “An automatic financing system has crept in here and there, and the outstretched hand is often not critically questioned.” Haslauer also spoke today about a self-image that people would go to the country “and say: please pay.” that recipients of funding: also tap into other sources, such as private sponsors.
It is not yet fully known where exactly funding will be reduced or eliminated. However, Svazek said today that the Diakonie’s funding of 120,000 euros for independent legal advice for asylum seekers and third-country nationals will be completely eliminated. Renovation financing will also be reduced and the heating cost subsidy will also decrease from 600 euros to 250 euros. PV subsidies are completely eliminated from housing subsidies. There will now be a new storage subsidy to make existing systems more efficient. Svazek also promised property owners more resources for contractual conservation, but less money for climate projects.
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.
