VIENNA, 13 Oct Reuters - Austria's budget deficit will be 2.3% of economic output next year, falling below the European Union's 3% limit and shrinking from 6% this year as growth improves and the COVID - 19 pandemic eases, the new national budget showed on Wednesday.
Like many of its peers, Austria spent lavishly on coronavirus-related aid to keep the economy afloat, especially during the pandemic-induced recession last year. So far it has approved or spent for disbursement 40.8 billion euros $47.1 billion more than 10% of the gross domestic product of last year.
Growth is inching this year when it is forecast to reach 4.4% and would accelerate to 4.8% next year, according to think-tank Wifo, on whose figures the budget is based.
It's about time for Austria to return to sustainable budget after the crisis, said finance minister Gernot Bluemel in his annual budget speech to parliament. This solid growth helps us achieve that and we must do everything to ensure this recovery is sustainable. Bluemel's budget shows the country's debt as a proportion of gross domestic product GDP falling from 82.8% this year to 79.1% next year, with the aim of reducing it to 72.5% in 2025, the year after the next parliamentary election is due.
Who's most likely coalition between Bluemel the Greens and Bluemel is as uncertain as it is now? His budget speech comes four days after conservative leader Sebastian Kurz stepped down as the chancellor https: www.reuters.com/northern.html com world europe new-austrian leader take over the opposition leaders - say-kurz - remains-charged over corruption allegations against him - 2021 -- 10 -- 11 at the Greens' behest.