Austria Approves 2027‑28 Double Budget Amid Deficit Cut and Sectoral Cuts

The Austrian Nationalrat approved a double budget covering fiscal years 2027 and 2028. The plan targets a federal deficit of 2.7 % of GDP in 2027 and 2.3 % in 2028, aiming to bring the deficit back within the EU‑mandated 3 % limit by 2028.

The budget projects revenues of €112.7 bn against expenditures of €128.2 bn for 2027, and €115.8 bn revenue versus €129 bn spending for 2028. Major allocations include €652 mn for digitalisation, integration and minority groups, €9.55 bn for family and youth programmes, €12.86 bn for education, and significant funding for rail and road infrastructure, notably the Lobautunnel and related highway projects.

Opposition parties criticised the plan for cutting climate‑related spending, postponing the valuation of family allowances, and prioritising highway construction over public transport and green initiatives. NEOS highlighted investments for young people, while the Greens warned that youths are the “biggest losers” of the budget. The FPÖ attacked the rise in government information‑campaign costs.

Labour‑market reforms were also adopted: early‑retirement benefits are capped at €5,200 per month, the AMS budget remains stable, employer contributions for marginal workers rise to 23 %, and workers over 63 will have to pay unemployment insurance contributions. Protest rallies against the highway projects were organised ahead of the budget vote.