Vienna's budget: deficit better in 2024, worse this year

"The financial situation is good and stable," the city council assured in principle. In addition, the city has been doing better than the budget for the seventh year in a row. According to Hanke, the fact that the deficit was almost 500 million euros less last year is due to a number of factors. For example, there was more income from local taxes. Record employment is partly responsible for this development, he explained.

large projects carried out more efficiently

In addition, it was possible to spend around 300 million less at the municipal utilities in 2024. According to the head of the department, a tighter controlling system for major projects had a positive impact. Savings in the municipal administration and a better financial result also contributed to the "satisfactory" result.

The city's current debt is 11.9 billion euros. But it is likely to continue to grow, because in 2025 the deficit will probably be higher, not smaller. The forecast was revised from 2.3 billion euros to 3.8 billion euros. Hanke already indicated this a few weeks ago. For the time being, little has changed in the assessment.

Financial equalization to be renegotiated

However, he stressed that the figure represents a "worst-case scenario". He cited a significant decline in the federal government's share of revenue as the main reason. This means that around 420 million euros less will flow into the city's coffers. Hanke spoke out in favor of renegotiating the financial equalization scheme to counteract this. He also said that federal-state talks were necessary on the EU Stability Pact.

But savings are also to be made in the town hall. The finance director wants to raise up to 500 million euros here as part of a joint project with the business groups. There are no details yet. However, Hanke assured: "There will be no savings on the scope and quality of services." Instead, efficiency measures in the administrative apparatus are to be implemented, for example through the use of AI solutions.

365-euro annual ticket remains

There are also no plans to increase fees by making extraordinary increases. Steps in this area are regulated by the Valorization Act, Hanke stressed. He also assured: "The 365-euro annual ticket will also remain." At the same time, there are plans to continue investing. There should also be positive budget effects from labor market measures.

The Vienna Finance Councillor has already outlined a longer-term consolidation path. The aim is to achieve a balanced budget again by 2030. This should be achieved without severe cuts for the population and the location, he stated.

(The interview was conducted by Gerald Mackinger/APA)