The budget development in the first quarter of 2023 is not particularly favorable. According to current data from the Ministry of Finance, payments of 20.6 billion euros are offset by payments of 25.7 billion euros up to March.
In addition, compared to the previous year, payments increased more than payments. The abolition of cold progression and anti-inflation measures are responsible for this. On the other hand, the CoV aid is becoming less.
Overall, the net financing balance of the Federal Government amounted to minus EUR 5.2 billion by the end of March 2023 and was therefore EUR 1.4 billion more in the red than in the same period of the previous year.
The general trend in interest rates was unfavourable. Costs increased by 79.9 percent compared to the same period of the previous year. Deposits also increased, albeit only by 7.2 percent. This is mainly due to the higher gross tax revenue with lower transfers to the federal states, municipalities and the EU at the same time.
The execution of the budget shows the need to halve the deficit in the next few years, according to Finance Minister Magnus Brunner (ÖVP) in a press release. His goal is for the deficit to be well below three percent of GDP from 2024.
