Against inflation

Vienna: Housing bonus & co. cost 860 million euros

City Councillor for Finance Peter Hanke

(Bild: Tomschi Peter, stock.adobe.com, krone.at-Grafik)

You always get the bill in the end. This is also the case in Vienna after the first double budget in the city's history. And what do the accounts for 2023 look like? A touch less debt than expected and higher investment in the city. One big financial chunk is the housing bonus & co.

Behind the dull title of the financial statements is actually the city's detailed accounting, in which every cent of expenditure is listed exactly. City Councillor for Finance Peter Hanke (SPÖ) presented the figures on Thursday, in which there are some surprises. The good news first: Vienna's new debt in 2023 was not quite as high as budgeted. However, within a manageable range: 1.3 billion euros in new debt - instead of 1.4 billion euros. However, with higher investments in the location, infrastructure and economy. Vienna spent a whopping 3.3 billion euros.

The biggest chunks of expenditure are: Health, social affairs, education and childcare. Vienna invested 10 billion euros in these areas last year. Hanke: "That makes up 50 percent of the entire budget. Specifically, 3.4 billion euros were spent on social affairs, 2.9 billion euros on health, 2.3 billion euros on education and 1.1 billion euros on childcare.

Specifically, 3.4 billion euros were spent on social services

Peter Hanke

From the housing bonus to Wien Energie
Someone also has to pay for the city's many anti-inflationary measures. The calculation shows: 860 million euros went to the housing bonus, energy bonus and housing support allowance and other measures here. How: "Wien Energie made two major price cuts amounting to 460 million euros. One in summer 2023 with 340 million for electricity, gas and district heating and a second for district heating the following fall with 120 million," Hanke continues.

There were price reductions for energy.

(Bild: Wien Energie_Hofer Christian)

In any case, the city sees the accounts as a success. "Almost all of the ambitious goals that City Councillor Hanke had set himself at the time were achieved," it says. According to the city's own findings: a gross regional product of 111 billion euros (the target was 110 billion), additional savings of 40,000 tons of CO² (the target was 85,000 tons), the creation of 40,000 jobs, more international relocations than expected. However: "Only the unemployment rate of less than 10 percent was only achieved temporarily and has since risen again." This is due to the high youth unemployment rate.

New cycle paths in Vienna

(Bild: APA/HERBERT PFARRHOFER)

What else is Vienna proud of? Hanke: "Around 35 million euros have been invested in the expansion of cycle paths, more than 50 projects have been implemented and 20 kilometers of new cycle paths have been created in the main traffic network." 

The city is relaxed about the new debt. The finances are "solid". Vienna's per capita debt is 5,500 euros, which puts us in the middle of the pack compared to other federal states (top of the league: Carinthia, best: Tyrol). Total Viennese debt: 10.2 billion euros.