Budget Policy in an Uncertain Economic and Geopolitical Environment

Given the currently challenging and economically as well as geopolitically uncertain situation, the federal budget planning until 2027 focuses on stabilising the purchasing power of private households, strengthening the production location of Austria in both the short and long term, promoting the transition to a carbon-neutral economy, and continuing efforts to enhance national defence. Against the backdrop of high government debt, a fundamentally altered interest rate environment, and demographic change these priorities are posing particular challenges for budget planning in the upcoming years. The budget for 2024 and the medium-term planning for subsequent years are characterised by a diminishing revenue dynamic on one hand and a strongly inflation-driven expenditure dynamic on the other.