Austria raises budget deficit forecast for 2024, 2025

Vienna [Austria], November 6: The Austrian government's budget deficit for 2024 and 2025 is expected to reach 3.9 percent and 4.1 percent of gross domestic product (GDP) respectively, significantly surpassing the Maastricht criteria of 3 percent, the fiscal council said Tuesday in a press release.
Earlier this year, the council had projected a lower deficit of 3.4 percent of GDP for 2024 and 3.2 percent for 2025, Austrian broadcaster ORF reported.
In addition, Austria's government debt ratio continues to climb, with projections indicating it is expected to reach 79.7 percent of GDP this year and 81.6 percent in 2025, far above the Maastricht guideline of 60 percent, according to the council.
The council attributed the higher figures to increasing government spending, economic recession and tax cuts while warning that an initiation of a European Union deficit procedure is likely.
Christoph Badelt, head of the council, said that there is an urgent need for budget consolidation, but it should be done without hindering economic recovery.
Source: Xinhua