During a third reading, Austria’s National Council recently adopted the country’s 2012 budget, providing for a deficit of 3.2%, as well as for state debt of 74.6% of gross domestic product (GDP). Drawn up under the motto “stable finances for a secure future”, the 2012 budget bill is the first draft budget to have been prepared by Austrian Finance Minister Maria Fekter.
During the course of the debate, the Austrian People’s Party (ÖVP) stated its clear opposition to the introduction of any new taxes in Austria, adamant that Austria is already a country of high taxation and that to a large extent there is already equality of distribution.
In stark contrast, members of ruling coalition partner the Social Democrats (SPÖ) underlined the need for a “mix” of revenue and expenditure measures, and reiterated calls for the introduction of a millionaires’ tax and for a tax on transactions to regulate the financial markets and to generate additional revenues.
In the final budgetary debate, Finance Minister Fekter underscored that although a zero deficit would indeed have been preferable, overall budgetary consolidation is nevertheless consistently on the right path.
Emphasizing that Austria’s economic data is currently positive, the minister stressed that the country is well prepared for tough times ahead, and reiterated that the strict consolidation course would continue to be maintained in future. Fekter noted, however, that the wheels of the country’s economic motor would not be hindered by full austerity measures.
