Austria's 2027/28 budget faces consolidation shortfall, says fiscal council chief

Finance Minister Markus Marterbauer is set to present Austria's double‑budget for 2027/28 to the National Council on 10 June. The accompanying budget law, required to implement the planned savings, has not yet been finalized.

Fiscal council president Christoph Badelt warned that the €2.5 billion of consolidation measures announced so far are insufficient. He estimates that cuts of more than €6 billion are needed to bring the deficit down to the 3 % of GDP target by 2028. Badelt also cited the macro‑economic impact of the measures, rising inflation and the uncertainty created by the Iran conflict.

The budget includes a progressive corporate‑tax increase for companies earning over €1 million from 2028, an extension of the stability levy on banks, tighter limits on profit allowances and a higher real‑estate earnings tax. Badelt expressed doubts that these steps alone will achieve the fiscal goals.

Additional topics raised by Badelt included tough university‑funding reforms and concerns over health‑care financing, reflecting broader fiscal pressures beyond the core budget package.