"It's down to forecasts"

Budget: Brunner defends higher deficit

(Bild: APA/GEORG HOCHMUTH)

The meeting of EU economy and finance ministers in Luxembourg on Tuesday will focus on the economic situation in Europe and the corresponding reactions, the economic impact of the Russian war of aggression in Ukraine and climate financing. Finance Minister Magnus Brunner (ÖVP) emphasized before the meeting that Austria was also affected by the deterioration of the economy in Europe, which also had an impact on the budget deficit.

"We are feeling the economic deterioration throughout Europe", said the still Finance Minister, who is soon to move to Brussels as the designated EU Commissioner for Migration. According to Brunner, the fact that the Austrian budget deficit was only corrected upwards after the National Council elections is due to the date of publication of the forecasts, which are "announced when they are announced, always in spring and fall". Austria had submitted its figures to the EU Commission beforehand and no excessive deficit procedure had been opened.

Second year of recession in a row
The economic researchers at Wifo and IHS had revised their economic forecast sharply downwards compared to the June estimate on October 4 and are now expecting the second year of recession in a row. In addition, the forecast for the public budget deficit in 2024 has been significantly raised to 3.7% and 3.5% of GDP respectively. This puts the deficit above the EU debt rules (Maastricht criteria) of 3 percent. In June, Wifo and IHS predicted a budget balance of -3.2% and -3.0% respectively in 2024.

"Figures need to be revised"
According to Brunner, the new forecast is also due to the effects of the flood disaster and the increase in the climate bonus: "The figures had to be revised. We have had to change them based on the forecasts. The economic situation in Europe has an impact on our budgets."

The European Commission's requirement stipulates that Statistics Austria transmits its data to the EU statistics office Eurostat in the autumn, according to a statement from the BMF: "For this purpose, the BMF provides Statistics Austria with current forecasts for the deficit and debt in 2024 and has published these on the BMF homepage as part of the transparency offensive. The timing of these transmissions has been standardized throughout the EU for years and is always in the same period."