Margit Kraker, President of the Courtroom of Auditors, is in good firm together with her name for extra austerity within the federal authorities. As reported, Finance Minister Magnus Brunner (VP) acquired an explosive letter from the EU Fee only a few days in the past, calling on Austria to cut back its debt.
Extra on the topic: Excessive deficit: EU sends a warning letter
Beforehand, Fiscal Council Chairman Christoph Badelt said that the brand new federal authorities must put collectively financial savings packages totaling round 10 billion euros over the subsequent 4 years. SP finances spokesman Jan Krainer put the financial savings required at 12 billion euros.
The monetary statements for 2023, which Kraker introduced on Thursday, present that the federal authorities’s debt stage final yr was 283.25 billion euros – a rise of 12.36 billion in comparison with 2022. For the reason that finish of 2019, earlier than the beginning of varied crises, monetary debt has elevated by 74.5 billion euros.
The federal finances as soon as once more recorded a adverse internet results of minus 10.72 billion euros, whereas belongings quantity to only below 126 billion euros. The rise in debt is primarily as a result of reduction measures on account of inflation and rising curiosity obligations, it was mentioned yesterday.
“Duty for the longer term”
With a view to adjust to European fiscal guidelines, Kraker believes that there is no such thing as a various to austerity measures. “The long-term sustainability of public funds should not be jeopardized in favor of short-term measures that burden the finances. It is a nice accountability for the longer term; the subsequent era additionally wants monetary leeway,” she warned in opposition to reduction measures that aren’t completely obligatory and known as for a sustainable finances coverage.
The debt ratio was 77.8 % of GDP final yr, and the Ministry of Finance is forecasting a debt ratio of 77.4 % for 2027 – regardless of a slight discount, it can proceed to be effectively above the Maastricht goal of 60 % of GDP. Along with curiosity bills, spending on pensions, well being and care will even proceed to rise within the coming years.
