The budget amendment launched by the government at the end of April was approved in the National Council on Wednesday. The amendment increases the deficit by 6.5 billion euros. Meanwhile, the opposition has criticized the budget and called for further relief.
AUSTRIA. The effects of the Ukraine war would necessitate changes to the budget, explained the new state secretary, Florian Tursky (ÖVP). Both the 2022 budget and the federal financial framework for 2022 to 2025 will be adapted as a result of the amendment. The 2022 deficit will thus increase by EUR 6.5 billion to EUR 19.1 billion. Payments will increase by EUR 4.9 billion in 2022, and deposits will fall by EUR 1.6 billion, as the parliamentary correspondence reported on Wednesday evening.
The National Council decision to change the budget, which was actually only decided in autumn 2021, was passed by a majority. The opposition was dissatisfied. The present budget does not offer a suitable answer to the inflation, criticized SPÖ MP Jan Krainer, for example.
What are your thoughts on the government’s relief measures?
Care billion not included
The federal government is making budgetary provisions in the billions to ensure a national gas reserve, the energy relief package and the aid measures for people from Ukraine. Additional budget funds would also be needed in connection with the ongoing pandemic.
What is missing in the new budget, however, is the care billion. The ÖVP and the Greens explained that the care reform had not yet been finalized at the time the budget amendment was prepared.
Budget recovery in subsequent years
Gabriel Obernostererer (ÖVP) rejected the planlessness of the government criticized by Jan Krainer (SPÖ). The care reform was not priced in because it would only have a budgetary impact in 2023, argued the ÖVP deputy. Christoph Matznetter from the SPÖ saw things differently. Since the decision will also change the financial framework until 2025, the care reform should have been included in the amendment, he clarified. Hubert Fuchs (FPÖ) also criticized the lack of care billion.
Tursky countered criticism from the opposition that it was not serious to budget for measures as long as the details were not available. According to the new state secretary, the budget can be expected to recover in the years to come.
opposition for further relief
From the point of view of the SPÖ, the present budget does not offer a suitable answer to the rise in prices, criticized Krainer, who already predicted the next amendment for November due to the lack of billions in care.
FPÖ and NEOS advocated abolishing cold progression as announced and reducing non-wage labor costs. The two opposition parties also criticized the increase in the commuter allowance. While the FPÖ sees it as just a drop in the bucket, according to NEOS, there was a lack of accuracy.
FPÖ and SPÖ for increasing the military budget
Reinhard Bösch (FPÖ) and Robert Laimer (SPÖ) also submitted a motion to adjust the military budget. The upper limits for military spending are to be gradually increased from EUR 3 billion in 2022 to EUR 5 billion in 2025. Investments in the federal army are urgently needed in order to be able to guarantee the protection of the population, emphasized Bösch. However, the application did not receive the required approval.
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