Vienna's Debt Mountain Continues to Grow in 2025: This is How They Plan to Save

The Viennese deficit will be lower than expected in 2024. The preliminary estimate was 2.2 billion euros, but now initial calculations show: The budget deficit will be around 1.7 billion euros. This was reported by Finance City Councilor Peter Hanke (SPÖ) in an interview with APA. However, as expected, the figures for this year are less rosy. In 2025, the deficit will exceed the forecast. Hanke is now planning a consolidation, including internal savings measures.

"The financial situation is good and stable," the city councilor assured in general. Furthermore, for the seventh consecutive year, the results are better than the preliminary estimate. According to Hanke, the fact that last year's deficit was almost 500 million euros less is due to several factors. For instance, more revenue from the municipal tax was collected. This development was partly due to record employment, he explained.

Additionally, it was possible to spend around 300 million less on the municipal utilities in 2024. According to the department head, a tighter control system for major projects has had a positive impact there. Savings in the magistrate and a better financial result also contributed to the "satisfactory" outcome.

Currently, the city's debt level is 11.9 billion euros. However, it is likely to continue growing, because: In 2025, the deficit will probably not be lower, but higher. The forecast has been revised from 2.3 billion euros to 3.8 billion euros. Hanke hinted at this a few weeks ago. For now, little has changed in this assessment.

He emphasized, however, that the figure represents a "worst-case scenario." He cited a significant decline in the federal revenue shares as the main cause. Accordingly, around 420 million euros will flow less into the city treasury. Hanke advocated, among other things, for renegotiating the financial equalization to counteract this. He also stated that federal-state discussions are necessary regarding the EU Stability Pact.

But savings are also to be made at the town hall. The finance chief aims to generate up to 500 million euros here as part of a joint project with the business groups. There are no details yet. However, Hanke assured: "The scope and quality of services should not be compromised." Instead, efficient measures in the administrative apparatus, such as the use of AI solutions, are to be implemented.

There will also be no extraordinary increases in fees. Steps in this area are regulated by the valorization law, Hanke emphasized. He further assured: "The 365-euro annual ticket will also remain." At the same time, further investments are planned. There should also be positive budget effects from labor market measures.

The Vienna City Councilor for Finance also outlined a longer-term consolidation path. By 2030, the aim is to achieve a balanced budget again. This should be realized without harsh cuts for the population and location, he noted.

(The interview was conducted by Gerald Mackinger/APA)

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