VIENNA, Reuters – Austria’s deficit in the budget will fall below the 3% European Union limit next year and decrease from 6%. This is due to growth improving and COVID-19’s pandemic decreasing, according to the latest national budget.

Austria, like many other countries, spent extravagantly on coronavirus aid in order to maintain its economy’s health, especially during the last year’s recession. It has approved 40.8 billion euro ($47.1 billion) in disbursements so far, more than 10% off last year’s gross national product.

According to Wifo (think-tank), on whose numbers the budget is built, growth is expected to return this year. It is currently forecasted to increase to 4.4%.

In his annual budget speech, Gernot Bluemel, Austria’s Finance Minister stated that “We will in Austria return to a sustainable buget policy after the crisis.” This strong growth is a key factor in our success and it’s up to us to do all we can to make sure that the recovery continues.

Bluemel’s budget shows that the country’s total debt, as a percentage of GDP (gross domestic product), will fall to 79.1% in 2020 from 82.8%. The goal is to reduce it to 72.5% by 2025. This year’s next parliamentary elections are due.

The future of the Bluemel-Greens coalition is unclear. His budget speech comes four days after conservative leader Sebastian Kurz stepped down as chancellor https://www.reuters.com/world/europe/new-austrian-leader-take-over-opposition-say-kurz-remains-charge-2021-10-11 at the Greens’ behest over corruption allegations against him.

($1 = 0.8655 euros)