20.01.2023

A Brief Look at Municipal Finances 2021 to 2024

WIFO Study Commissioned by the Austrian Association of Municipalities

WIFO economists Simon Loretz and Hans Pitlik have analysed municipal finances from 2021 to 2024. President of the Austrian Association of Municipalities Alfred Riedl and WIFO Director Gabriel Felbermayr presented the results at a press conference on 20 January 2023.

The report provides a review of the development of municipal finances in Austria in 2021 and a preview of the years 2023 and 2024. After the COVID-19 health crisis had been largely overcome, the past year 2022 was characterised by unpredictable geopolitical and economic developments, which in turn affected the municipal level. High inflation rates initially ensured strong growth in municipal tax revenues at the level. However, the fiscal impact of rapidly rising (energy) prices, inflation-driven dynamic growth in intermediate consumption and wage expenditure, and the end of the period of low interest rates will burden municipalities on the expenditure side.

More information on the press conference can be found here (in German).