Vorarlberg is fighting: 148 million euros minus in the 2024 budget!

Vorarlberg is fighting: 148 million euros minus in the 2024 budget!

Vorarlberg, Österreich - In 2024, the state of Vorarlberg had to accept a clear minus of 242.9 million euros in terms of its financing budget. These figures were unanimously approved by the state government on Tuesday and are to be presented to the state parliament on July 2 for resolving. According to Puls24 The deficit in the earnings budget was 148.5 million euros, which was in the forecast framework.

As Governor Markus Wallner (ÖVP) explains, the state authorities feel "sharp headwind", which is primarily due to stagnating income and increasing expenses. Interestingly, no new debts were made in 2024, and the existing debt was 449.9 million euros at the end of the year. Compared to 2023, the debt was reduced by around 1 million euros, which has a positive effect compared to the pre-Corona debt of 110.4 million euros.

focus on education, social affairs and health

A look at the use of funds shows that over 70 % of the budgets flow into the areas of education, social affairs, health and housing development. Despite the difficult financial Situation, the investments were kept at the level of 92.5 million euros at the level of previous years. Even if large expenses in the areas of municipalities, electricity cost grants and housing subsidies are incurred - around 85 million euros more were issued than estimated - the need for a clear financial policy strategy is not unnoticed. Wallner emphasizes the urgency of a consolidation course in order to stabilize the country's financial situation.

to make adjustments to the housing subsidy funding guidelines, since these were used more than originally thought in 2024. Current interest development is also attentively pursued, since 200 million euros for new loans are planned in the 2025 budget. The reserves of 95 million euros remain unused, and the use of these funds is currently unclear.

A look at the overall economy

When do you even look outside the box? In the national perspective, it doesn't look much rosier. Parliament's budget service informs that budget planning for the years 2024 to 2027 is strongly shaped by additional inflation -related additional payments. For 2024, payments of 123.5 billion euros and deposits of EUR 102.6 billion are scheduled. The negative net loan financing balance amounts to -20.9 billion euros for 2024, which represents a deterioration compared to the previous year.

The payments are definitely increasing, especially in the areas of guest houses and the interior/military, while the data indicate a stagnating debt rate. The challenges due to the rising interest rate level and the resulting higher interest payments are obvious. According to the Parlaments-datatbank , the current planning for continuing high deficits and stuck debts.

In the total, Vorarlberg is faced with a challenging financial situation in 2024, which not only makes a rethink, but also shows that the right measures have to be taken to improve the budget situation sustainably.