Federal Government’s €1 billion municipal package
Finance Minister Blümel: The Federal Government is providing municipalities with €1 billion in the form of special-purpose grants. Community investments are supported with up to 50% funding.
“We intend to provide federal states and municipalities with the necessary funds to create economic incentives. That’s why we have launched this municipal package. It has a value of €1 billion in order to support both existing and future investments”, said Finance Minister Gernot Blümel at today’s press conference on the Federal Government’s municipal package. The €1 billion municipal package supports investments by up to 50% and includes the construction and renovation of kindergartens, schools, retirement homes and sports facilities, as well as investment in public transport, energy saving measures, the construction of renewable energy production facilities and the expansion of the broadband network. Additionally, it covers renovations, such as of churches and museums. It will run until 31 December 2021. The allocation of funds will be based partly on the graduated population key and partly on the number of inhabitants. For example, the municipality of Sillian, which has about 2,000 inhabitants, can receive around €200,000 while the city of Graz can get up to €40.5 million.
“Today’s investment package is another important milestone for the economic recovery. A lot of economic value creation happens in municipalities, communities and cities and local authorities are, of course, suffering from a loss of income due to the coronavirus crisis”, continued Finance Minister Blümel. The current situation has triggered a significant loss of revenue, which is likely to lead to the suspension or postponement of investment projects. WIFO calculations show that this year, federal states will have to factor a minus of about 7.3% into their share of income and municipalities a minus of 6.8% compared to original projections. With the municipal package of €1 billion, the Federal Government is providing impetus for local economies. “These investments create both added value and jobs, and will contribute to Austria’s economic comeback.”