Public Finances Under Substantial Consolidation Pressure. Medium-term Budget Projection 2025 to 2029

Simon Loretz and Hans Pitlik
Additional contact information
Hans Pitlik: WIFO

WIFO Reports on Austria, 2025, issue 6

Abstract: The medium-term budget projection for 2025 to 2029 indicates a persistently high need for fiscal consolidation in Austria's public finances. If the consolidation measures announced by mid-April remain unchanged, the general government deficit would remain close to 4 percent of GDP throughout the projection period, thus clearly violating the Maastricht threshold. The targeted consolidation volumes set out in the government programme are unlikely to be achieved in 2025 and 2026. Without ambitious reforms to improve efficiency across all levels of government, the debt-to-GDP ratio would rise to over 90 percent by 2029. The projection assumes a hypothetical "no policy change" scenario and does not account for any potential additional measures in the scheduled 2025-26 dual-year budget.

Keywords: Public finances; Austria (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.wifo.ac.at/?p=426248 abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wfo:repoau:y:2025:i:6

Access Statistics for this article

More articles in WIFO Reports on Austria from WIFO Contact information at EDIRC.
Bibliographic data for series maintained by Florian Mayr ().