Austrian Stability Pact 2012 and Federal Fiscal Shifts

A Projection for the Years 2024 to 2028

The Austrian Stability Pact 2012 (ÖStP 2012) stipulates commitments of federal government, states, and municipalities to sustainably adhere to criteria of budget discipline. In light of projected macroeconomic conditions and the newly adopted fiscal equalisation scheme, the short study provides initial estimates of budget developments at the regional level for the fiscal equalisation period 2024 to 2028. Expenditure dynamics at the subnational level, particularly in the areas of healthcare, elementary education, social services, and elderly care, and restrained revenue growth result in states and municipalities potentially moving away from the goal of budgetary balance.