Budget for 2025

Upper Austria faces an iron austerity course

On Tuesday, LH Thomas Stelzer (right) and his deputy Manfred Haimbuchner speak plainly.

(Bild: Wenzel Markus/Markus Wenzel)

For the second time in a row, politicians in Upper Austria are calling for "bleak" times: How will the state's finances develop? The "Krone" has some initial answers. 

There was a huge outcry during the negotiations on the 2025 budget for the state of Upper Austria. The bombshell came when discussions were already underway at civil servant level: due to a lack of revenue and far too optimistic forecasts in the Ministry of Finance, Upper Austria is facing a 500 million euro budget shortfall.

The next bad news reached Governor and Finance Minister Thomas Stelzer (ÖVP) on Wednesday of this week: according to new forecasts, our province will receive less revenue from the federal government, specifically another 2.9% less. In figures, that is minus 107 million euros.

We will be called upon to make our contribution across all areas, because although there is more money across the board, it is less than many would wish for.

LH-Vize und Gesundheitsreferentin Christine Haberlander, ÖVP

Stelzer and Haimbuchner present the current figures
What this means for the state's upcoming budget will become clear on Tuesday: ÖVP (LH Thomas Stelzer and FPÖ (LH Vice-Chairman Manfred Haimbuchner) will present the figures for 2025, which will then be presented to the state government, assigned to the state parliament and adopted at the budget state parliament in December. The "OÖ-Krone" found out in advance where cuts will be made.

Less funding, no department will be "spared"
There will certainly be a reduction in the disbursement of subsidies, which both parties have already criticized in the past. No department is likely to be "spared" following the savings order issued by the head of the province to cut ten percent in discretionary and one percent in compulsory expenditure. State Councillor and Deputy Governor Christine Haberlander, who manages more than €1.6 billion in the health sector alone, says: "A dynamic growth path must now be followed by a phase of consolidation for budgetary reasons."

Deputy Governor Christine Haberlander

(Bild: Wenzel Markus/Markus Wenzel)

Haberlander: "There is less more than many would wish for"
In other words: savings must be made. And further: "Across all areas, we will be required to make our contribution, because although there is more money across the board, there is less more than many would wish for," says Haberlander, outlining the budget plans for her departments in the coming year.

I am pleased that I was able to clear major obstacles out of the way in the political negotiations. We can live with the result for the time being.

Landesrat Michael Lindner, SPÖ

Bild: © Harald Dostal / 2024

In contrast to Haberlander, Provincial Councillor Michael Lindner has a mini-budget, specifically 1.7% of the province's total budget. All the more reason for him to be pleased "that I was able to clear big chunks out of the way in the political negotiations. We can live with the result for the time being," says the SPÖ leader.

However, the situation remains very tense. I expect that the ÖVP and FPÖ will once again focus on concreting instead of climate, environmental and soil protection.

⁣Landesrat Stefan Kaineder, Grüne

Bild: Dostal Harald/© Harald Dostal / 2023

Stefan Kaineder, Provincial Councillor for Climate Protection, also speaks of a success in the negotiations - even if the budget cut targets announced by Stelzer at the beginning of October came as a surprise. The Green Party member was able to achieve a compromise on flood protection: "This means that the planned and extremely important flood protection measures can still be implemented." In general, however, Kaineder expects that "the ÖVP and FPÖ budget will not be fit for the future".