Parliament – Finance Minister Blümel presents the crisis budget for 2021



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Due to the crown crisis, there is a gap of 21 billion euros between revenue (76.4 billion euros) and expenses (97.4 billion). Including federal states and municipalities, this results in a deficit of 6.3 percent of GDP, the national debt is already skyrocketing to 84 percent this year. In 2020 and 2021, 50 billion euros are available to deal with the crown crisis.

“The budget response to the Covid crisis is expensive, but we can afford it,” Blümel said in his first real budget speech to parliament. The Finance Minister emphasized that it had been possible to help the economy quickly and powerfully through an economic stimulus package. 29 billion euros are reserved for work and employment this year and next. Not only would this guarantee tens of thousands of jobs, it would also create prospects for the future. Blümel named security and climate policy as focal points in addition to the crown crisis.

Environment and Transport Minister Leonore Gewessler (Greens), as well as Interior Minister Karl Nehammer and Defense Minister Klaudia Tanner (ÖVP), were equally pleased with their pieces of cake. “With the new ÖBB master plan we are bringing the largest rail package the republic has ever seen. More than 17 billion euros for rail projects across the country are an announcement in the fight against the climate crisis,” Gewessler said after of the decision of the Council of Ministers. satisfied. There is also more money in the budget chapter on climate, environment and energy. 350 million euros are made available for the rehabilitation offensive and “Raus aus Öl”, 110 million for environmental subsidies and 61.5 million for the expansion of renewable energies.

The police, the armed forces and the judiciary also receive more money. The Ministry of the Interior receives nine million euros for infrastructure and 21 million euros for expanding cybersecurity. The judiciary can invest € 61.4 million in the urgently needed staff increase and the Internet hate package. The armed forces receive funds for investments in the areas of defense from NBC, medical services, counterterrorism and disaster control (25 million euros each per area and year). Another 70 million are destined to strengthen the militia.

The major care reform announced by the government is not yet in Social Affairs Minister Rudolf Anschober (Greens) budget for 2021. However, the social budget foresees a focus on care, dementia and disability. In addition, Anschober receives 120 million euros for the purchase of a corona vaccine. Pension costs will increase significantly, also due to the particularly strong increase in pensions in 2021. At almost € 12.4 billion, that’s € 1.7 billion more than estimated for this year.

However, the government will reimburse the federal states for the cost of abolishing the nursing regression until 2024. The corresponding € 200 million per year is anchored in the budget accompanying law that the ÖVP and the Greens sent to parliament together with the budget. It also regulates the increase in pensions and the increase in financing of the Consumer Information Association.

Countries will also be reimbursed for the costs of fighting the corona pandemic (including the 1450 hotline and the acquisition of protective equipment and barrack hospitals). In addition, the budget support law provides for the financing of corona vaccines 80 million euros this year and 120 million euros next.

The promised tax reform is not included in the 2021 budget or the 2024 financial framework, as criticized by NGOs and Wifo chief Christoph Badelt. Ministers Blümel and Gewessler confirmed on Wednesday that they would continue to bet on the greening of the tax system. “Negotiations are still ongoing,” both ministers said.

Chancellor Sebastian Kurz (ÖVP) reaffirmed after his Finance Minister Gernot Blümel’s budget speech that “the course for successful crisis management had been set.” “2021 will be a three-way battle: the fight for every Covid patient, the fight for every company and the fight for every job,” Kurz said in a written statement to the APA.

The representatives of the workers and the opposition were not satisfied with the budget. The Chamber of Labor (AK) and the Federation of Trade Unions (ÖGB) called for more action to be taken against high unemployment. The Chamber of Commerce, on the other hand, praised the fact that securing the “support tools” in the crown crisis creates the necessary planning security.

SPÖ Vice President Jörg Leichtfried saw a “budget of broken promises”, NEOS President Beate Meinl-Reisinger a “discouraged budget”. And the head of the FP club, Herbert Kickl, criticizes the fact that the billions in expenses mentioned by Blümel do not reach those affected: “What is happening here is a mess of numbers and a mess of real support.”



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