State budget

Salzburg’s mountain of debt continues to grow strongly

Svazek and Haslauer presented the budget for 2025

(Bild: ANDREAS TROESTER)

On Tuesday, the black-blue Salzburg state government presented its state budget for 2025, which is worth over 4.4 billion euros. Despite a sluggish economy, falling tax revenues and an explosion in salaries and material costs, this is not an austerity budget, but a "consolidation budget with strong economic stimuli", emphasized Finance Officer and Governor Wilfried Haslauer (ÖVP). To this end, the state is taking on 475 million euros in new debt.

In order to combat the economic downturn, 680 million euros will also be invested in the coming year - which will primarily benefit the construction sector, said Haslauer. 190 million will flow into the new housing subsidy in 2025, 108 million into the state service center currently under construction at the main railway station, almost 100 million into the expansion of the local railroad and the purchase of new train sets. This item also includes the EUR 13.8 million earmarked next year for the planned S-LINK regional light rail system. In 2025, 40 million euros each have been reserved for hospitals and cultural buildings, such as the renovation of the festival halls.

More money for social services and care
The budget increase in the health and care sector is substantial, with an increase of EUR 154 million, which now amounts to EUR 1.34 billion. There is also more money for social services and childcare. A total of 693 million euros has been earmarked for the social sector, an increase of 37 million euros. This means that health and social services now account for half of the state budget.

Funding in our sights
"However, we do not want the state to be maneuvered into an incalculable level of debt," explained Haslauer. That is why the state government has set itself a roadmap for the coming years. In 2026, new debt should amount to a maximum of 350 million euros, in 2027 a maximum of 250 million euros, in 2028 a maximum of 150 million euros and in 2029 a maximum of 100 million euros. "In 2029, the country's total debt should not exceed three billion." The provincial governor also emphasized today that the budget for 2025 had been drawn up without increasing taxes.

"If the framework conditions were different, we could come close to a balanced budget," said Deputy Governor Marlene Svazek (FPÖ) confidently. And she announced that the effectiveness of the many subsidies in particular would be reviewed. "Here and there, an automatic funding mechanism has crept in and the hand that is held out is often not critically scrutinized." Haslauer also spoke today of a self-image that people would go to the state "and say, please pay." He suggested that funding recipients also tap into other sources, such as private sponsors. 

It is not yet fully known where exactly funding will be cut or canceled. However, Svazek said today that the funding of 120,000 euros for independent legal advice for asylum seekers and third-country nationals from Diakonie, for example, will be cut completely. Renovation funding will also be cut, and the heating cost subsidy will be reduced from 600 euros to 250 euros. The PV subsidy in the housing subsidy will be completely abolished. Instead, there will be a new storage system subsidy to make existing systems more efficient. Svazek also promised landowners more funding for contractual nature conservation, but less money for climate projects.