New development: Green budgeting—integrating environmental goals into the resource allocation process

Birgit Moser-Plautz and Sanja Korac

Public Money & Management, 2025, vol. 45, issue 7, 770-775

Abstract: Green budgeting is a systematic approach to integrating environmental considerations into public financial management. Austria's approach demonstrates a comprehensive methodology of scrutinizing all budgetary items for their environmental impact. With the Austrian Ministry of Finance taking a leading and co-ordinating role, the green budgeting approach at the federal level seems promising. It is characterised by a commitment to continuous improvement, and supported by high-level political will, as well as robust institutional mechanisms. As more countries explore green budgeting, Austria's experience offers valuable lessons and insights—particularly in how inter-agency co-ordination can support the expansion of green budgeting across all line ministries. Little is known about whether and how countries are co-ordinating approaches to green budgeting across governmental levels. This article presents voices from selected state and local governments, highlighting the challenges of a lack of resources at subnational government levels and ensuring that current budgeting systems are not overwhelmed. The authors suggest approaches that supranational bodies can take to promote green budgeting.

Date: 2025
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DOI: 10.1080/09540962.2025.2467744

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