Hofinger: Substantial financial improvement for municipal budgets

ÖVP community spokesman for the 2024 Financial Equalization Act in the Finance Committee

Vienna (OTS) The beating heart of rural areas beats in the communities. They create a high quality of life for people and, with their diverse tasks, ensure that all generations – from children to the elderly – can feel safe and at home. “It is all the more important to ensure stability in the municipal budgets,” said today, Tuesday, ÖVP municipal spokesman Abg. Mayor Manfred Hofinger on the occasion of the deliberations on the Financial Equalization Act 2024 in the Finance Committee.

With 3.4 billion euros in financial resources and more revenue share advances to the municipalities, new paths to financial improvement for municipal budgets are being taken. “It wasn’t just about setting up a new financial equalization by January 1, 2024, it was primarily about securing the communities’ liquidity sustainably and substantially,” said Hofinger.

More money for child care, housing and the environment

In order to support states and municipalities in fulfilling essential tasks – such as in the areas of elementary education, housing and renovation as well as the environment and climate – concrete goals for implementation are defined with the newly created future fund. A total of 1.1 billion euros is available, with 45.5 percent or 500 million euros going to the expansion of childcare and 27.25 percent or 300 million euros to creating affordable housing and increasing the share of renewable energies in the coming year year are dedicated. 22.75 percent of the respective state pot goes directly to the communities. “Because they are the ones who essentially have to implement the measures in the communities,” says Hofinger.

Financial allocation resources to states and municipalities doubled

To ensure sustainable budget management, financial allocations to the states and municipalities will be doubled to 600 million euros per year. “Of this, 120 million euros will be allocated in particular to financially weak municipalities and those affected by emigration, according to the existing structural fund keys. “This is also a doubling of funds, especially for rural communities,” Hofinger points out, adding that the communities will have a total of 220 million euros available per year.

“In order to continue to maintain coexistence in all its diversity with a lively club life, modern infrastructure and sufficient workplaces and childcare places, we need to be able to plan our financing. An important prerequisite for this will be created with the FAG 2024,” says Hofinger, who expects broad approval for this bill. (Ending)

Questions & Contact:

Press office of the ÖVP parliamentary club
+43 1 401 10-4439 or +43 1 401 10-4432
http://www.oevpklub.at

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