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Financial agendas at the end of budget discussions in the National Council
Vienna (PK) – Today, the financial agendas traditionally formed the end of the deliberations in the National Council on the federal budget for 2021 and the federal financial framework for 2021 to 2024. Parliamentary groups once again had the opportunity to define their positions, with the ÖVP and the Greens talking about a budget for crisis management, which had also managed to take into account investments in future areas such as education, research and climate protection. SPÖ and NEOS, for their part, accused the finance minister of having once again presented a budget with incorrect figures, and indicated that the consequences of the second blockade had not yet been illustrated. The FPÖ criticized the support measures in general as inadequate and recalled the emergency situation in tourism.
In the course of the debate, the ruling parties introduced an amendment to the Federal Financial Framework Law. This is intended to allow administrative interns to be extended for a limited period to meet short-term staffing needs in the interest of crisis management.
The opposition parties presented two proposals for resolutions. SPÖ and NEOS are calling for contactless book pickup stations to be made possible immediately at closure to support the national book trade. In addition, the SPÖ is committed to securing the finances of the community.
Sharp crown-related drop in public taxes
The financial agendas discussed among various subgroups are also heavily influenced by the effects of the COVID-19 pandemic. There are steep drops in public charges. Only the estimated gross taxes, for example, fall by 9,150 million euros to 83,050 million euros, which affects not only the federal government, but also the federal states and municipalities. The biggest drops were in corporate income tax, assessed income tax and sales tax, and revenue expectations had to be revised down again due to the second lockdown. The decline in revenue share is also dramatic, with federal states and municipalities losing a total of around € 3.84 billion. However, due to the management of the COVID-19 crisis, financial compensation payments will increase, while a significant reduction in payments is anticipated in the context of financial market stability. Pension payments for civil servants will in turn increase 3% in 2021. Finally, the positive effects of the current low interest rates are impacting financing and currency exchange agreements.
ÖVP emphasizes crisis management and future investments
Karlheinz Kopf (ÖVP) emphasized that the budget in question was strongly influenced by crisis management, in particular by rescue measures and aid for the economy. Short-term work, tax deferrals and subsidies for various corporate areas are necessary to maintain our livelihoods, he emphasized and recalled that Austria spends more money on stabilization measures relative to its population than all other countries. But investments are also required in future areas such as education, research or climate protection, which are also reflected in this budget. Now it is about overcoming the crisis together with the greatest possible solidarity, but it is also important to come out of the crisis strengthened, Kopf summarized the basic tenor of the budget from his point of view.
Gabriel Obernosterer (ÖVP) stated in his speech that the Minister of Finance presented a budget that stabilized the situation and included measures to overcome the crisis. No matter what the government does, there will always be criticism from the opposition.
Greens welcome fixed-cost subsidies and temporary tax cuts
Jakob Schwarz (Greens) welcomed the additional € 4 billion for the fixed-cost subsidy as precise support for companies and underlined the importance of waiving layoffs and manager bonuses in exchange for subsidies . He also recalled lowering the lower income tax rate and more temporary tax cuts and hopes this will provide a significant boost to the economy. Schwarz is sure that one will not be able to get out of the crisis without private capital.
Elisabeth Götze (Greens) concentrated on her contribution to the finances of the community. The communities are the “blood circulation of Austria”, providing citizens with everything that is important. Green deputies saw the municipal investment law passed in the spring as the right instrument to support weak municipal finances related to the crown. As part of the municipal investment package, at least 50% of the costs of the municipal projects presented would be borne by the federal government. Converted that would be € 100 per inhabitant of the community.
SPÖ talks about a budget with wrong numbers
Kai Jan Krainer (SPÖ), on the other hand, asked about the cost of the crisis and complained that the consequences of the current lockdown were not reflected in the budget. According to their criticism, Parliament is now adopting a budget whose figures cannot be maintained. The debt ratio alone will be 10% higher than originally assumed. It would be better to give the finance minister time to count the actual figures and then decide on a budget in December that is true. In particular, Krainer asked for more money to combat unemployment, an increase in unemployment benefits to 70% of the net replacement rate, total compensation for the loss of income of 2.5 billion euros for municipalities and an increase in the hospital grants. Furthermore, in Krainer’s view, large corporations should also contribute to overcoming the crisis.
“This budget is not adequate to get Austria out of the crisis,” said Selma Yildirim (SPÖ). Above all, she criticized what she considered insufficient funds for the women’s budget. In this area “peanuts are distributed” and government groups celebrate for it. Therefore, the current budget for women is a sociopolitical step backwards, so Yildirim.
Criticism of the FPÖ to company closures
On the part of the FPÖ, Gerald Hauser missed initiatives to strengthen consumption, so he returned to deposit the demand of his parliamentary group for a € 1,000 voucher to exchange in local businesses. He also strongly criticized Austria’s participation in the EU reconstruction fund, emphasizing that the money spent on it should be used to deal with the emergency at home. Hauser also accused the government of exacerbating the crisis by closing plants and schools. Faced with the tourism crisis, he called for measures to strengthen social capital and also promoted an increase in the investment premium and tax relief for operational tasks. Hauser also advocated for compensation for travel agencies and small private owners, saying, in general, that small ones should not be left behind in the crisis.
NEOS demands sustainable structural reforms and transparency
Finance Minister Blümmel managed to present a budget twice in a year that was already wrong on the day the decision was made, NEOS mandate Karin Doppelbauer said, expressing dissatisfaction with the federal budget. He also complained about a “patchwork mat” to face the crisis and recalled that employers had been waiting for the fixed-cost subsidy 2 since mid-September. If the government doesn’t quickly bring sensitive concepts to the table, many companies won’t be able to unlock after the shutdown, he warned. Above all, Doppelbauer called for a tax break for the labor factor, the abolition of the cold progression and pressed for sustainable structural reforms, such as pensions, the subsidy system and federalism. For the NEOS budget spokesperson, transparency about COVID-19 measures is particularly important.
Regarding civil servants ‘pensions, NEOS MP Gerald Loacker expressed concern about the projected increase of 400 million euros in 2021. He also criticized what he considered too weak an impact target for civil servants’ pensions. . This would only include the timely payment of pension benefits. (Continuation of the National Council) hof / med
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