The Fiscal Council looked at the state budget. The budget is a plan for money. The government wants to have fewer debts. It wants to reach this by 2028. But the Fiscal Council says: This plan does not work. There is a gap of 5.7 billion Euro.
A deficit is a money gap. A deficit is less money than needed. In 2028 the deficit should be 3 percent. The council thinks it will be 3.8 percent. New rules for climate taxes are a reason. These taxes will be missing in the budget.
The debt ratio shows all debts of the country. This number might grow to 88 percent by 2030. This is very high. Christoph Badelt is the head of the Fiscal Council. He demands reforms. Reforms are changes to make things better.
He talks about the pension system. He also talks about the health system. The government should also save money on red tape. Red tape means long work for rules and papers. If Austria fails the European Union watches more closely.
