A stagnating economy and a marked rise in unemployment prevented the attainment of a balanced public budget in 2002. Because of the persistent cyclical weakness and of the tax reform envisaged for 2004-05, a balanced budget position will be achieved only after 2007. In spite of a noticeable...

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 draft federal budget for 2006 is shaped by the impact of the 2004-05 tax reform and the persistence of high unemployment. The deficits (in the Maastricht definition) in the general as well as in the federal government households will therefore narrow only to a limited extent. Expenditure and...

The twin budget 2007-08 implies a decline in federal revenues as percent of GDP to 24 percent by 2008, down by 1.8 percentage points from 2006, and a fall of the expenditure ratio by 2.4 percentage points to 25.1 percent of GDP. The federal government deficit in the Maastricht definition is set...

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...

Against the background of rising inflation, a number of proposals for fiscal policy measures to dampen the increase in consumer prices have been advanced in Austria. Generally speaking, fiscal policy cannot address the causes of inflation, but may contribute towards offsetting its redistributive...

Without any tax sovereignty of its own and faced with a substantial decline in the volume of its "traditional own resources", the EU is left with a very low degree of revenue autonomy. The EU budget is financed primarily from national contributions by the member states. There is a growing...

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...

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...