The Austrian National Council has officially opened three days of plenary debates regarding the federal budgets for 2027 and 2028. According to official budget projections, the federal deficit is expected to reach 2,7 % in 2027, with a total government-wide deficit of 3,5 %. While the 2028 federal budget anticipates a deficit of 2,3 %, the government aims to reach the 3 % Maastricht threshold that year.
Budgetary Overview and Deficit Projections
The federal financial framework for 2027 estimates revenues of 112,7 Mrd. € against expenditures of 128,2 Mrd. €. For 2028, the government projects revenues of 115,8 Mrd. € and expenditures of 129 Mrd. €, resulting in a negative balance of 13,2 Mrd. €. Lawmakers are currently conducting a detailed review of individual departmental budgets and the accompanying budget legislation following the initial general debate.
Did You Know? The federal government plans to reduce the number of parliamentary staff positions by 29 between now and 2031 as part of a broader effort to manage the current budget pressure.
Departmental Spending and Political Debate
The budget for the Federal Chancellery, which covers integration, digitalization, and ethnic groups, is set to rise by 103,5 Mio. €—a 19 % increase—reaching 652,6 Mio. € in the upcoming year. Michael Schilchegger (FPÖ) criticized a 50 % increase in spending for government information campaigns and advertisements, which are budgeted at 2,4 Millionen € for the Chancellery alone. In response to these fiscal constraints, Minister Claudia Bauer stated that while the integration budget will see a reduction to 124 Mio. € in 2027 and 126 Mio. € in 2028, funding for essential programs like German language courses remains secured at 61 Mio. € annually. Minister Bauer also announced a policy shift requiring employment as a prerequisite for receiving family benefits within the basic care system, a move intended to save approximately 30 Mio. €.
Institutional Oversight and Future Reforms
The Rechnungshof (Court of Audit) faces a budget of 48,9 Mio. € for 2027 and 48,85 Mio. € for 2028, with cost reductions achieved by not refilling five staff positions. RH President Margit Kraker emphasized that despite these constraints, the institution will prioritize innovation and increased use of artificial intelligence to maintain its audit quality. Meanwhile, the Volksanwaltschaft (Ombudsman Board) is set to receive a slight budget increase to 16,8 Mio. € by 2028. The board has taken on new responsibilities as an independent monitoring body for the Common European Asylum System.
What May Happen Next
Following the three-day review of departmental budgets, the National Council will move toward the finalization of the budget legislation.
Frequently Asked Questions
What is the expected federal deficit for 2027?
The federal deficit for 2027 is projected to be 2,7 %, while the total government-wide deficit is expected to reach 3,5 %.
How is the government planning to reduce integration costs?
Minister Claudia Bauer stated that the government will prioritize spending and reduce costs where services can be offered more efficiently. Additionally, it plans to save 30 Mio. € by making family benefits in the basic care system conditional on employment.
What is the status of the parliamentary budget?
The parliamentary budget is set to decrease by 2,3 % from 2026 to 2027. According to National Council President Walter Rosenkranz, no major investments are planned, and 29 positions are scheduled to be phased out by 2031.
How will the shift toward AI-driven auditing impact the transparency of government spending in the coming years?
