Austria's 2027/28 Double Budget Targets Deficit Cut, Sparks Equity Debate

The Austrian government presented the 2027/28 double budget, pledging no new taxes and a deficit reduction to below three percent by 2028. The plan aims to save €2.5 billion annually, with measures such as the abolition of the "cold progression" and a tax‑free employee bonus of up to €500.

Economic analysts note that the budget heavily favors large corporations: wage‑related cost reductions will save businesses about €2 billion per year, while the Momentum Institute estimates households will bear roughly four times the fiscal burden of firms. Family benefits are not indexed to inflation, and the pension system introduces a tiered adjustment that reduces real purchasing power for average retirees. The AMS budget is set to rise in 2027 but faces a €109 million cut in 2028, and unemployment contributions are being raised to a uniform 2.95 percent, increasing costs for low‑income workers.