Austria’s government says it needs to save money. So, it’s cutting social benefits, stopping the climate bonus, and asking citizens and ministries to do more with less, reported by OE24. But a well-known Austrian think tank, Agenda Austria, says the real story is very different.
In fact, the government plans to spend €8.1 billion more in 2025 than it did this year. That’s almost as much as it spent during the COVID-19 crisis. At the same time, government income is expected to hit a new record—52.2% of Austria’s entire economic output.
“This is not saving by the state. It’s saving from the people,” said Agenda Austria.
Here are some key numbers from the group’s report:
- From 2024 to 2029, Austria’s spending will rise by 13.4%, while income grows by 17.3%
- In 2025 alone, the government expects €8.4 billion more in income and €8.1 billion more in spending
- Over six years, expenses will go up by €36.3 billion, and income by €43 billion
- But national debt will also rise by €92 billion, an increase of over 23%
Franz Schellhorn, the director of Agenda Austria, criticized the government’s actions: “They act like we’re still in a pandemic. The government keeps spending more every year—even more than during the financial crisis.”
Schellhorn also warned that the biggest problems are yet to come. By 2030, Austria’s aging population will lead to even higher costs. Most of the extra money being spent—90% by 2029—is going to the pension system. If things don’t change, Austria could face major financial trouble, including breaking EU debt rules.
