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A New Revenue Sharing Act and a New Stability Pact for Austria – No Fundamental Changes


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  • Margit Schratzenstaller


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    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 revenue sharing agreement will not change fiscal relations fundamentally. The weight of shared federal taxes will increase; most of them will be distributed according to uniform revenue shares. The revenues of the smallest municipalities from the horizontal apportionment of shared federal taxes will increase. The states' strong dependency on intergovernmental transfers will not be reduced, the tax autonomy of the subnational levels of government will remain low.

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    Bibliographic Info

    Article provided by WIFO in its journal Quarterly.

    Volume (Year): 10 (2005)
    Issue (Month): 1 (January)
    Pages: 12-22

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    Handle: RePEc:wfo:wquart:y:2005:i:1:p:12-22

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    Keywords: revenue sharing agreement; fiscal relations; stability pact; intergovernmental transfers; Austria;


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    Cited by:
    1. Margit Schratzenstaller, 2005. "Budget Proposal for 2005: Tax Reform Causes High Public Deficit," Austrian Economic Quarterly, WIFO, WIFO, vol. 10(1), pages 23-39, January.


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