Finance Minister Christoph Badelt forecast a budget deficit of 3.4 percent of GDP on Wednesday, well above the Maastricht limit of three percent. “Of course we take Mr. Badelt's analysis seriously,” explained Finance Minister Magnus Brunner (ÖVP) when asked on ZIB2 yesterday. He did not want to promise that Austria would be below the threshold in 2024.
Currently there are various forecasts, with the lowest for Austria being 2.5 percent and the highest being 2.9. “All economic researchers except Badelt still see us at three percent,” Bruner said.
“The World Has Changed”
“We definitely depend on experts while preparing every budget. Our experts saw us at three per cent and that's why we approached it like that,” the finance minister said.
But: “The world has changed.” For example, costs related to CoV assistance, housing package or electricity cost break are important. “Mr. Badelt is absolutely right that we need to tone down our sense of entitlement and not give out any election candy.”
Brunner: “Revenue is not a problem”
Badelt warned very clearly about these figures: “It is about perspectives: we are looking with open eyes at how incomes and expenses differ. This is not sustainable and the Finance Council must show that. We are going in the wrong direction.
Of course, the finance minister doesn't see it that way: “We certainly don't have a revenue problem in Austria, if anything, it's a spending problem.” , if it makes sense, you should do it.” Budgeting focused more on “future expenses.”
