The current crisis makes for the most difficult macro-economic environment for fiscal policy since the Second World War. The ratio of the general government deficit and of government debt to GDP each rise markedly above the "Maastricht" reference value. The structural (cyclically-adjusted)...

The tax reform 2009-10 compensates for fiscal drag and makes an important contribution towards combating the current economic crisis. It also includes elements for a better reconciliation of work and family obligations. Other essential economic goals will, however, not be achieved. Neither will...

The tax reform 2004-05 includes tax cuts within income taxation (€ –2.2 billion) and corporate taxation (€ –1.1 billion) as well as increases of several excise taxes (€ +232 million). The changes in the income tax rate scale taking effect in 2005 will increase tax progression and...

The Revenue Sharing Act 2008 carries no fundamental reform of the existing federal financing arrangements. The long-criticised deficiencies of the system remain for the most part unaddressed. Thus, the revenue autonomy at the sub-national level continues to be very limited. Nevertheless, the...

The new Austrian domestic Stability Pact aims at the achievement of a zero deficit until 2008. At the federal level, the Maastricht-relevant deficit is to be reduced to 0.75 percent of GDP, states and municipalities together are obliged to obtain a surplus of 0.75 percent of GDP in 2008. The new...

The 2004-05 tax reform and the after-effects of the stimulus packages, which were introduced as a counter-measure to the weak economic growth during the past three years, will increase the overall budget deficit to 1.9 percent of GDP in 2005. Transfer expenditures will gain in weight again. The...

According to the draft federal budget for 2012, the general government deficit in the Maastricht definition is to be reduced to 3.2 percent of GDP; the debt-to-GDP ratio will move further up to 74.6 percent. The share of transfers, including retirement payments, in total federal expenditure is...