A Brief Look at Municipal Finances 2020 to 2023

The report (updated version) provides a review of 2020 and a preview of the further development of the budgetary situation of municipalities in Austria. The economic development has been characterised by the COVID-19 pandemic for two years now. In the crisis year 2020, municipalities experienced a strong increase in municipal financial debt. Expectations about the budgetary situation of the municipalities in the years 2021 to 2023 are determined by a certain stress relief due to the projected positive economic development. However, the decisions on the eco-social tax reform are slowing down the revenue momentum of the joint federal taxes.