And once again a budget gap arises. This time there is excitement in the Vienna Finance Commission – of all times in an election year. The federal capital could also be threatened with a severe austerity package.
The city of Vienna already expects a large budget deficit for this year: it should amount to 2.2 billion euros. Now city councilor for Finance Peter Hanke (SPÖ) warned in the Financial Commission of an even bigger deficit. Ultimately, up to 3.8 billion euros could disappear from the city coffers. According to the information available to the Crown, inflation and increased personnel costs in particular are putting a hole in the city’s financial buffer.
Save without harming the economy
The ÖVP therefore urgently calls for countermeasures without hindering economic growth. The People’s Party envisions a minimum income reform or a government. The minimum security had to be increased last year from almost 900 million euros to 1.1 billion euros. For 2025, 1.1 billion euros was budgeted for social assistance. But here too, it must increase again by around 113 million euros from October 2024.
“No more time should be lost on reform. “The city council must now take the right measures and finally get Vienna’s financial situation into shape,” said VP club chairman Markus Wölbitsch and financial spokesman Manfred Juraczka.
The city holds the federal government responsible
Hanke plays the ball back to the waistband. “Criticism is now coming mainly from the ÖVP, which is responsible for the largest budget gap in the history of the republic with its ‘whatever it costs’ and its former Finance Minister Magnus Brunner. This is the abandonment of political children at a high level,” Hanke said.
Lots of sweets without counter financing
The federal government is primarily responsible for the difficult financial situation of the states. The federal government is said to have implemented many relief measures without counter-financing. As a result of the eco-social tax reform and in particular the abolition of cold progression, the states now have 880 million euros less available for budgeting. This creates a huge additional burden for countries to bear.
The social network in Vienna is strong
Hanke immediately rejected the ÖVP plans. Hanke: “For the State of Vienna, there is no doubt that important areas such as healthcare, nursing, but also the social network can be financed despite economically difficult times.” Vienna is well positioned. From the current perspective, an increase in the deficit to 3.8 billion euros cannot be ruled out – but it is still too early for a final settlement.
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.
