Austria's Budget on Track to Meet Deficit Goal, Government Says

Austria's government is confident it will meet its 2026 deficit target of 4.2% of GDP, with Finance Minister Markus Marterbauer and State Secretary Barbara Eibinger-Miedl reporting positive fiscal developments in the first half of the year. The Finance Ministry's analysis shows government spending increased by 2.8% compared to the same period in 2025, a rate lower than the projected 3.6% for the full year. Expenditures on subsidies notably decreased by nearly 11%, though outlays for unemployment benefits and pensions rose.

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The data from the first half-year proves that the federal government is fulfilling its task of bringing Austria toward a stable budget course step by step.

Revenue growth was strong, with gross taxes increasing by 3.9%. Net taxes retained by the federal government rose 1.7%, while revenue shares for the federal states and municipalities saw significant increases of 7% and 8.7%, respectively. The improved fiscal data from the federal states, now accessible monthly, shows their combined balance was 2 billion euros better than in the first half of 2025. Eibinger-Miedl highlighted this as evidence that all levels of government are pursuing necessary consolidation.

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The improved budget data of the federal states shows that they have also embarked on the necessary consolidation course.

Despite the positive outlook, Marterbauer acknowledged that expenditures for interest payments and pensions continue to pose challenges. The government views the current trajectory as a step-by-step fulfillment of its commitment to bring Austria toward a stable budget course. Officials expressed satisfaction with the data, emphasizing the shared responsibility across all government levels as the foundation for a sustainable fiscal path.

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The joint responsibility of all levels is the basis for a sustainable and reliable budget course.