The big arithmetic

Fresh money for the state and municipalities

(Bild: Antal Imre)

After the flood comes the clean-up: the restoration of the extremely high flood damage in Lower Austria is also reflected in the state budget. More money is needed. But now the revenue shares are threatening to fall ...

Even before the devastating floods in September, it was clear that savings would have to be made in the state budget. However, the weather disaster completely changed the financial flows. A lot of money is currently being invested in direct aid and the reconstruction of single-family homes, companies and infrastructure. It is particularly bad news for Lower Austria that the so-called revenue shares - i.e. money that is transferred from the federal government to the federal states - are in danger of falling. This would result in "125 million euros less for the state budget as early as 2025", warned State Finance Councillor Ludwig Schleritzko recently.

After the devastating flood, we are making 548 million euros available to those affected and the municipalities!

Ludwig Schleritzko, Finanzlandesrat (ÖVP)

The current forecast for revenue shares has even worsened by 2.95 percent compared to July, the ÖVP politician calculated. From 2026 to 2028, at least 100 million euros less per year must currently be expected.

548 million euros for the flood victims
"If the forecasts come true, this means that we will have to tighten our belts for all federal states," explained the provincial councillor. Despite the planned blue-yellow austerity measures - as reported by the "Krone" - there is still the threat of an enormous funding gap. This is because in Lower Austria, a supplementary budget is to be passed in the November session of the state parliament due to the flood disaster. "We are talking about 548 million euros that the state of Lower Austria is making available to those affected by the tragic floods, but also to the municipalities," Schleritzko calculated. He expects a solution to this financial problem at the conference of provincial finance officers next Wednesday in Linz.

Association of municipalities also demands money
The President of the Association of Municipalities and Mayor Johannes Pressl has also repeatedly called for more money for the municipalities - most recently in an interview with the Kurier newspaper. "Additional burdens on the municipalities - from services of general interest to new challenges - must be compensated." The financial negotiations in Upper Austria will therefore certainly be very exciting ...