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Options for the Consolidation of Public Budgets in Austria


  • Karl Aiginger


  • Hans Pitlik


  • Margit Schratzenstaller



The Austrian Federal Government has set itself the goal to reduce the Maastricht deficit to 2.7 percent of the GDP by 2013. In the medium term, a consolidation of the public budgets will be necessary to regain room for manoeuvre for budget policy and to avoid undesirable distributive effects of the public debt. In the short term, the budget consolidation process may not leave the business cycle and the labour market unaffected; in the long term, the benefits following regained fiscal scope will also further growth and employment. One prerequisite for a successful budget consolidation strategy that will not dampen growth and employment in the long term is the accompanying implementation of an "Active Component" ("Aktivkomponente"), i.e., the priority of expenditure promoting growth. Furthermore, measures to support private consumption and investment should be taken. An "Impulsprogramm 2010" should be implemented prior to any budget consolidation measures.

Suggested Citation

  • Karl Aiginger & Hans Pitlik & Margit Schratzenstaller, 2010. "Options for the Consolidation of Public Budgets in Austria," Austrian Economic Quarterly, WIFO, vol. 15(2), pages 184-197, July.
  • Handle: RePEc:wfo:wquart:y:2010:i:2:p:184-197

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    References listed on IDEAS

    1. Hans Pitlik & Margit Schratzenstaller, 2009. "Financial Market Crisis and Public Budgets," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(12), pages 961-966, December.
    2. Margit Schratzenstaller, 2009. "Draft Federal Budget 2009-10 and Fiscal Framework 2009-2013," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(8), pages 583-601, August.
    3. Margit Schratzenstaller, 2008. "The New Revenue-sharing Act 2008: Fundamental Act Reform Postponed Again," WIFO Monatsberichte (monthly reports), WIFO, vol. 81(1), pages 35-42, January.
    4. Thomas Url, 2010. "Financial Market Crisis: Origin, Short-Term Reaction and Long-Term Adjustment Requirements," Austrian Economic Quarterly, WIFO, vol. 15(1), pages 54-77, April.
    5. Margit Schratzenstaller, 2009. "Draft Federal Budget 2009-10 and Financial Framework 2009 to 2013," Austrian Economic Quarterly, WIFO, vol. 14(3), pages 154-172, September.
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    Cited by:

    1. Karin Fischer & Rauf Gönenç & Robert W. R. Price, 2011. "Austria: Public Sector Inefficiencies Have Become Less Affordable," OECD Economics Department Working Papers 897, OECD Publishing.

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