IDEAS home Printed from https://ideas.repec.org/a/wfo/monber/y2005i1p49-60.html
   My bibliography  Save this article

New Revenue Sharing System and Stability Pact: No Fundamental Changes

Author

Listed:
  • Margit Schratzenstaller

    (WIFO)

Abstract

In late 2004, a new revenue sharing system and a new stability pact for Austria were adopted for the period from 2005 to 2008. The new Austrian stability pact aims at reducing the Maastricht-relevant overall government deficit from 1.9 percent of GDP to a "zero deficit" in 2008. The federal deficit is to decrease from 2.4 percent to 0.75 percent of GDP. Länder and municipalities are obliged to achieve budget surpluses, which are to increase from 0.6 percent to 0.75 percent of GDP. Particularly for the Länder and the municipalities, the goals of the new stability pact are rather ambitious. The surpluses attained in the last few years partly rest on one-off measures and on the specific design of budgetary transactions (e.g., spin-offs of public entities, property sales, leasing transactions). This consolidation strategy cannot be expected to be sustainable in the long run. The municipalities markedly retrenched on their investment outlays, which may reduce the long-term growth potential.

Suggested Citation

  • Margit Schratzenstaller, 2005. "New Revenue Sharing System and Stability Pact: No Fundamental Changes," WIFO Monatsberichte (monthly reports), WIFO, vol. 78(1), pages 49-60, January.
  • Handle: RePEc:wfo:monber:y:2005:i:1:p:49-60
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/25406
    File Function: Abstract
    Download Restriction: Payment required

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:monber:y:2005:i:1:p:49-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz). General contact details of provider: http://edirc.repec.org/data/wifooat.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.