{"id":426248,"date":"2025-05-20T12:38:09","date_gmt":"2025-05-20T10:38:09","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/426248\/"},"modified":"2025-05-27T11:57:03","modified_gmt":"2025-05-27T09:57:03","slug":"public-finances-under-substantial-consolidation-pressure-2","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/426248\/","title":{"rendered":"Public Finances Under Substantial Consolidation Pressure"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-426248","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"Medium-term Budget Projection 2025 to 2029","text":"The medium-term budget projection for 2025 to 2029 indicates a persistently high need for fiscal consolidation in Austria's public finances. If the consolidation measures announced by mid-April remain unchanged, the general government deficit would remain close to 4 percent of GDP throughout the projection period, thus clearly violating the Maastricht threshold. The targeted consolidation volumes set out in the government programme are unlikely to be achieved in 2025 and 2026. Without ambitious reforms to improve efficiency across all levels of government, the debt-to-GDP ratio would rise to over 90 percent by 2029. The projection assumes a hypothetical \"no policy change\" scenario and does not account for any potential additional measures in the scheduled 2025-26 dual-year budget.","onlinedate":"2025-05-20 10:38:14","lang":"English","publication_series":"","publication_date":"20250520","publication_date_year":"","publication_date_full":true,"publication_num_pages":"9","keywords":"[\"Public finances\",\"Austria\"]","jelcodes":"[\"E30\",\"H12\",\"H70\"]","related_publications":"[\"33ec6f39-f226-453e-b8cc-154ca4a7bbe6\",\"7e0c0ff8-4d70-47dd-aeed-d57adf117ec6\"]","pdf":426525,"zip":null,"link":"","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"6","journal":"WIFO Reports on Austria","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44424],"research_groups":[3500],"collaboration":"","persons":[3859,3792],"persons_data":"[{\"personId\":3859,\"personName\":\"Simon Loretz\",\"organisationNames\":[]},{\"personId\":3792,\"personName\":\"Hans Pitlik\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Loretz, S.<\\\/span><span>, &amp; Pitlik, H.<\\\/span> (2025). <span>Public Finances Under Substantial Consolidation Pressure: Medium-term Budget Projection 2025 to 2029<\\\/span>. <span><em>WIFO Reports on Austria<\\\/em><\\\/span>, (6).<\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Loretz S<\\\/span><span>, Pitlik H<\\\/span>. <span class=\\\"title\\\"><span>Public Finances Under Substantial Consolidation Pressure: <span class=\\\"subtitle\\\">Medium-term Budget Projection 2025 to 2029<\\\/span><\\\/span><\\\/span>. <span>WIFO Reports on Austria<\\\/span>. 2025 May 20;(6).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{10c33771544447169ca0a3812f4a6755,<\\\/div><div>  title    = \\\"Public Finances Under Substantial Consolidation Pressure: Medium-term Budget Projection 2025 to 2029\\\",<\\\/div><div>  abstract = \\\"The medium-term budget projection for 2025 to 2029 indicates a persistently high need for fiscal consolidation in Austria's public finances. If the consolidation measures announced by mid-April remain unchanged, the general government deficit would remain close to 4 percent of GDP throughout the projection period, thus clearly violating the Maastricht threshold. The targeted consolidation volumes set out in the government programme are unlikely to be achieved in 2025 and 2026. Without ambitious reforms to improve efficiency across all levels of government, the debt-to-GDP ratio would rise to over 90 percent by 2029. The projection assumes a hypothetical {\\\"}no policy change{\\\"} scenario and does not account for any potential additional measures in the scheduled 2025-26 dual-year budget.\\\",<\\\/div><div>  keywords = \\\"Public finances, Austria\\\",<\\\/div><div>  author   = \\\"Simon Loretz and Hans Pitlik\\\",<\\\/div><div>  year     = \\\"2025\\\",<\\\/div><div>  month    = may,<\\\/div><div>  day      = \\\"20\\\",<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Reports on Austria\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Public Finances Under Substantial Consolidation Pressure<\\\/p><p>T2  - Medium-term Budget Projection 2025 to 2029<\\\/p><p>AU  - Loretz, Simon<\\\/p><p>AU  - Pitlik, Hans<\\\/p><p>PY  - 2025\\\/5\\\/20<\\\/p><p>Y1  - 2025\\\/5\\\/20<\\\/p><p>N2  - The medium-term budget projection for 2025 to 2029 indicates a persistently high need for fiscal consolidation in Austria's public finances. If the consolidation measures announced by mid-April remain unchanged, the general government deficit would remain close to 4 percent of GDP throughout the projection period, thus clearly violating the Maastricht threshold. The targeted consolidation volumes set out in the government programme are unlikely to be achieved in 2025 and 2026. Without ambitious reforms to improve efficiency across all levels of government, the debt-to-GDP ratio would rise to over 90 percent by 2029. The projection assumes a hypothetical \\\"no policy change\\\" scenario and does not account for any potential additional measures in the scheduled 2025-26 dual-year budget.<\\\/p><p>AB  - The medium-term budget projection for 2025 to 2029 indicates a persistently high need for fiscal consolidation in Austria's public finances. If the consolidation measures announced by mid-April remain unchanged, the general government deficit would remain close to 4 percent of GDP throughout the projection period, thus clearly violating the Maastricht threshold. The targeted consolidation volumes set out in the government programme are unlikely to be achieved in 2025 and 2026. Without ambitious reforms to improve efficiency across all levels of government, the debt-to-GDP ratio would rise to over 90 percent by 2029. The projection assumes a hypothetical \\\"no policy change\\\" scenario and does not account for any potential additional measures in the scheduled 2025-26 dual-year budget.<\\\/p><p>KW  - Public finances<\\\/p><p>KW  - Austria<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Reports on Austria<\\\/p><p>JF  - WIFO Reports on Austria<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[\"Kaufmann Christine\"]","scientific_review":"[\"Felbermayr Gabriel\",\"Schratzenstaller Margit\"]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Public Finances Under Substantial Consolidation Pressure - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/426248\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Public Finances Under Substantial Consolidation Pressure\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/426248\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-27T09:57:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/426248\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/426248\\\/\",\"name\":\"Public Finances Under Substantial Consolidation Pressure - 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