State Audit Office: Financial flows between the country and the municipalities are unpleasant!

State Audit Office: Financial flows between the country and the municipalities are unpleasant!

Oberösterreich, Österreich - In Upper Austria, the financial structures of the country and communities have stuck. The Upper Austria. State Audit Office (LRH) has now made clear demands in order to unklove the financial flows between these two levels. As MeinDzirk in the future threaten increased debt, while at the same time the liquid funds in the country are swinging away. In the course of the Maastricht criteria, the debt level rose by 20.9 million euros to a total of EUR 2.37 billion in the previous year.

A closer look at the numbers shows that the debt including outsourced companies is 2.8 billion euros, which is at least 77.8 million less than in 2023. The financial situation remains tense: great efforts are necessary to keep the debt in the reasonable framework. Future financing deficits have already been forecast, and additional income to improve finances is currently not in sight. The transferred funds within the country offer another event for discussion.

clear demands for the future

In order to tackle the inequalities in the financial system, LRH boss Rudolf Hoscher demands that the transfer relationships between the federal, state and the municipalities. Last year Upper Austria received 275.5 million euros more than was paid to the municipalities. This balance drops to 120.9 million euros, taking into account the transfer payments to private legal entities, transfers to clubs or voluntary fire brigades are not taken into account in this analysis.

This all becomes all the more relevant, since the SPÖ sees its criticism of the financial equalization. Club boss Sabine Engleitner-Neu demands the deletion of the state levy to reduce the existing inequalities between the communities. The NEOs also speak out and call for structural reforms and more efficient administration within the agricultural and municipal administrations. As orf oö , sees the current financial situation.

financing of the communities: a complex matter

The challenges in front of which the communities are standing should not be underestimated. According to the Austrian Confederation, cities and municipalities need sufficient means to meet their tasks. Less than 40 % of the ongoing income comes from earnings shares in common federal taxes. The main finance sources are own taxes, especially local and property tax, supplemented by fees and fees. This structure is of central importance for the financing of the municipal tasks and was further simplified as part of the negotiations on the Financial Equalization Act. A settlement, supported by experts from the Association of District In view of this situation, it becomes clear that the unbundling of the financial flows is not only a requirement, but a necessity in order to ensure the financial stability of Upper Austria. A good knack in reforming financial relationships could lay the basis for a future -proof financing system. It remains exciting to pursue how the political landscape reacts to these challenges and whether the promised reforms are actually implemented.