Rigid targets

Three-digit million amount: savings plan of the state

As beautiful as our federal state is, it is also heavily indebted.

(Bild: Evelyn Hronek Kamerawerk)

The state government presented a far-reaching savings plan on Tuesday: All departments, including provincial companies, are to submit savings proposals - the savings target for the 2025 budget is "nine to ten percent".

"When we have positive developments, we pay off debts," says Governor Peter Kaiser (SPÖ) - but that is not the case this year. Due to "developments that are partly beyond our scope of action, i.e. high inflation and therefore high wage settlements", a higher tax estimate was forecast in the budget for 2025. A "three-digit million amount" would have to be saved, but the politicians do not yet want to give an exact figure.

The total debt of the state of Carinthia currently stands at 3.8 billion euros - this corresponds to a per capita debt of 6717 euros, the highest in the federal states. Both Kaiser and Finance Officer Gaby Schaunig (SPÖ) emphasize that the majority of this debt - 74 percent to be precise - was built up between 2002 and 2012. Only then was it possible to reduce some of the debt.

"No one-off effects" when making savings
But now savings have to be made: Nine to ten percent savings potential is the target set by the finance officer - across all departments and provincial companies. "Depending on the department, the savings range can go from zero to 100. There will be areas where it is not possible to make savings, while others may be able to be cut completely," says Schaunig.

The aim is a "long-term reduction path, no one-off effects or sleight of hand", demands Deputy Provincial Governor Martin Gruber (ÖVP): "And we are looking at all areas: Mandatory, discretionary and personnel expenditure. We are also prepared to change structures and laws if necessary."

Every member of the government must contribute to this process in their departments, Gruber emphasizes: "We are aware that some unpopular measures will be taken, but if you see that things are going in the wrong direction, clear decisions must be made."

State savings plan: Here's what happens now
Now it is the turn of the department heads to submit proposals - these will then be "politically evaluated by the government, translated into figures and submitted to Parliament," explains Kaiser. In the budget week before Christmas, next year's budget will be discussed in parliament and debated as planned.

Schaunig is motivated: "We had phases of Heta with completely different conditions, we managed that too - this is now a completely normal budgeting process." In provincial politics, too, it is "necessary to take countermeasures against economic crises and stagnation", said Kaiser. Despite everything, investments should also be made: "We must succeed in positioning Carinthia in such a way that there is also room for investment in the future," Gruber demands.