Vienna’s City Councilor for Finance Peter Hanke reacted with some surprise to the ÖVP Vienna’s sharp criticism of the existing budget situation. “Criticism is now coming from the ÖVP in particular, which is responsible for the biggest budget hole in the history of the republic with its “whatever the cost” and its former finance minister Magnus Brunner. This is political child abandonment at a high level
“says Hanke.
It is well known that the financial situation of the states and municipalities is also difficult. The main reason for this is the irresponsible financial policy of the ÖVP, which has implemented various tax relief measures without taking care of suitable 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 an immense additional burden that the countries have to bear. This year alone, the state of Vienna has over 420 million euros less in income. At the conference of state finance officers in November 2024, all federal states criticized the federal government’s failed budget policy, especially the Upper Austrian finance officer and ÖVP state governor Thomas Stelzer.
For the state of Vienna, however, there is no question that such important areas as health care, nursing care and also the social network must be financed despite economically difficult times. From today’s perspective, an increase in the deficit to 3.8 billion euros cannot be ruled out. In general, however, it is still too early to be able to confirm an actual value.
The federal government is veiled, Vienna is transparent about its budget
In contrast to the federal government, which concealed the actual budget situation for far too long, but ultimately had to admit a billion dollar deficit, the city of Vienna acts very transparently when it comes to its budget. It is important for the Vienna city government to give the population pure wine even in difficult times.
“Vienna has a stable budget situation. With assets of around 36 billion euros and reserves of 1.5 billion euros, Vienna has a good financial cushion. This is also the conclusion reached by the rating agency Moody’s, which gives Vienna the top rating of Aa1. Nevertheless, the overall situation for Vienna, as well as for all other states and municipalities, is tense.”
said Hanke. Hanke also points out that, according to the WIFO economic report, Vienna is the only federal state to be able to record an increase in value creation at +0.3%.
“And so it remains a bitter truth that we are feeling the effects of the federal government’s failed financial policy this year and even more strongly in the coming years. I have therefore already suggested an evaluation of the financial equalization in order to at least partially re-discuss the distribution key.”
said Hanke in conclusion.