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As was the case this year, the 2021 budget is also determined by the crisis in the crown. With expenditures of 97.8 billion euros and revenues of 75.2 billion euros at the federal level alone, the government expects a deficit of 22.6 billion euros.
That is 1.6 billion euros more than was supposed in mid-October. In addition, there are states and municipalities, which are also burdened by falling tax revenues and rising expenditures. At the national level, this results in a deficit of 7.1 percent of economic output.
7.1 percent deficit
The Finance Ministry expects a new record for the current deficit this year. After a slight surplus in the previous year, federal, state, local and social security authorities are threatened with 9.8 percent of economic output (gross domestic product / GDP) this year. The national debt will increase from 70.5 to 84.9 percent of GDP. However, these forecasts are for mid-October and could get worse. The second block has not yet been taken into account.
The Finance Ministry expects a deficit of 7.1 percent by 2021. The national debt will continue to rise, to a new record of 87.9 percent of economic output. That corresponds to more than 350 billion euros.
The deciding factors for the persistently high deficit are both the significant additional spending for the crown crisis – in particular from high unemployment, short-time work and financial aid – and the reduction in income due to the economic crisis.
Persistently high labor market costs
According to calculations by the Fiscal Council in October, this is the worst drop in public revenue since World War II. Through an amendment, the ÖVP and the Greens have revised the revenue estimate for 2021 in the budget committee down again by € 1.1 billion to € 75.2 billion.
In terms of expenses (totaling € 98.8 billion), the crisis has caused persistently high costs on the labor market. A total of € 11.75 billion is expected (including unemployment benefits and training).
The federal pension subsidy increases (due to the drop in contribution income) to 12.56 billion euros. Both values have been revised upwards in the committee. For short-time work, which will run until the end of March 2021, another € 1.5 billion should flow in next year. For this year (until last week) ten billion euros were approved.
Attention
New priorities planned by the government increase in the face of these billions Crisis management comparatively modest: 410 billion euros must be paid for the ad “Labor Foundation” give, this will receive 190 million euros Federal Army, the Ministry of Foreign Affairs receives 51 million euros for Development and foreign aid as well as IT and for Judicial there are 52 million euros, among other things, for legal advice in the new asylum care agency and for initiatives against “hate on the net”.
the Ministry of Social Affairs receives 89 million euros for projects on care, dementia and disability. And in the Sciences 103 million euros are allocated to research and universities of applied sciences. The prolonged increase in police.
