Image: APA/GEORG HOCHMUTH
The rise in interest rates in Austria not only affects savers and borrowers, but also the federal government. Public budgets are feeling the effects of inflation massively, for example in the form of increasing payments for pensions, staff and higher interest rates. Finance Minister Magnus Brunner (VP) informed about this in a broadcast on Monday.
If the budget is implemented by August, there would be deposits of 62.2 billion euros compared to payouts of 68.2 billion euros. The federal government’s net financing balance currently amounts to 6.0 billion euros, which is 1.2 billion euros more positive than in the same period last year.
“The federal government is giving people back more than it takes in through anti-inflation measures and permanent relief, such as the abolished cold progression and valorized social benefits,” Brunner is quoted in the broadcast.
At 68.2 billion euros, the payouts are 3.6 billion euros higher than in the same period last year. The main factors for this are higher federal refinancing costs, higher payments for pensions, social welfare and consumer protection as well as in connection with the electricity cost subsidy. Payments for Corona aid, however, have declined significantly.
There was also an increase in revenue compared to the same period last year, by 4.8 billion euros to 62.2 billion euros. The higher taxes paid by states and municipalities to the federal government contributed to this. According to the Ministry of Finance, higher dividend payments and the increase in wage tax also had a positive effect.
Brunner expects that inflation will “ease further” in the coming months. At 6.1 percent in September, inflation in Austria is not only at pre-war levels, but has almost halved since January 2023.
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Source: Nachrichten
