"There is no other way"

Cash crash in Lower Austria: the budget is in the red

The goal was a balanced budget. But then came corona, the energy crisis, inflation and the war in Ukraine - a balance sheet.

(Bild: stock.adobe.com/stock.adobe.com – Shisu_ka)

There should already be a balanced budget in 2021. However, the financial plans are no longer valid and the state of Lower Austria will have to take on new debt in the coming years. "Of course that hurts. But there's no other way," explains State Councillor for Finance Ludwig Schleritzko (ÖVP). A balance sheet. 

In 2015, the net financing balance - the amount needed to achieve a balanced budget - was just under 200 million euros. In 2019, revenue and savings ensured that it was heading towards zero - then came the time of crisis. One year later, the balance sheet showed a deficit of almost 800 million euros. After a brief recovery phase, the figures turned positive in 2022 - now the debt level is rising again ...

This year, the state parliament will have to approve a supplementary budget - while minus 479.8 million euros were planned for 2024, a minus of 647.3 million euros is expected to be on the books at the end of the year - increasing the deficit by 167.5 million euros.

(Bild: Krone KREATIV/Adobe Stock)

"Of course this is unpleasant"
State Finance Councillor Ludwig Schleritzko: "Of course this is unpleasant. But a lack of revenue shares, falling income, rising costs and the general economic situation mean that we also have to expect a deficit for the 2025/26 double budget." At 350 million and then 256 million euros. This is because the public sector is also affected by inflation. "We had to react to this in our budget. For example, we have recorded a total of 90 million euros in additional expenditure for increased personnel and energy costs," explains Schleritzko.

Everyone had to keep a lower profile and make cutbacks, because a budget policy concert of wishes can quickly turn into a whistling concert.

Ludwig Schleritzko, ÖVP-Finanzlandesrat

Bild: NÖ Landesregierung

The deficit is to be cushioned by the sale of housing loans. At the same time, the state government will also scrutinize the finances. "We have to define what we are and want to be financially responsible for and what we are not," says Schleritzko.

State Finance Councillor Ludwig Schleritzko presented a "budget of necessities" together with finance and economics expert Christian Helmenstein (right).

(Bild: NLK Pfeiffer)

"Big chunks": health, social affairs, construction
The biggest chunks will of course continue to be the provincial clinics including care centers, health and social services - which together make up almost 51 percent of the provincial budget. However, a lot of money will also flow into the areas of childcare, housing, roads and public transport, culture, education and science. The State Councillor for Finance commented: "We will not be putting together an austerity budget for 2025/26, but a budget of necessities." The figures are to be adopted by the state parliament in the government district of St. Pölten on July 3 and 4.

Until then, there will certainly still be political discussions about the financial budget.