Austria’s parliamentary budget office has raised doubts about the government’s ability to meet its deficit targets, warning that current plans may fall short under existing economic conditions, according to Kurier.
In its analysis of the 2027–28 double budget, released Thursday, the office said the goal of reducing the Maastricht deficit to three percent of GDP by 2028 is unlikely to be achieved with the measures now proposed.
It also warned that Austria’s debt ratio could continue to rise, reaching around 85 percent of GDP by 2031, despite expectations of gradually declining deficits.
The budget service described the outlook as highly uncertain, pointing to a volatile economic environment and what it considers overly optimistic tax revenue forecasts, especially from 2028 onward.
Additional risks include possible increases in Austria’s contributions to the European Union under a new long-term budget framework, as well as incomplete cost estimates for planned military expansion projects.
The report also noted that several planned savings measures have yet to be implemented, including cuts to environmentally harmful subsidies and efficiency reforms in state funding programs.
At the same time, Austria risks missing its EU climate targets for 2026 to 2030, which could result in additional costs of up to €2.9 billion if corrective steps are not taken.
To stay on track, the budget office stressed the need for consistent fiscal consolidation, with contributions from federal, regional, and local governments.
However, it warned that planned savings may not be fully realized and that the government is increasingly relying on revenue measures rather than spending cuts to close the gap.
