Marterbauer/Eibinger-Miedl/Schellhorn: General government deficit at 4.2% in 2025 - budget deficit better than expected Deficit of 4.2% expected for 2026
 

At 4.2% of GDP, the general government deficit turned out to be significantly better than expected when the double budget was prepared in May 2025. At that time, the forecast was 4.5 %. In addition to strict budget implementation, the improvement is due to an improved economic situation and lower expenditure on interest payments.

Broken down by sector, the result in the federal sector is €2.1 billion better than forecast in April 2025. The federal sector has thus performed 0.5 percentage points of GDP better than planned in the previous year. The federal states, municipalities and social security institutions each performed 0.1 percentage points worse than forecast. At 81.5% of GDP, the debt ratio was 3.2 percentage points below the April 2025 forecast. The success in 2025 shows that budget restructuring that takes distribution, employment and the economy into account can be successful.

The Ministry of Finance still expects a deficit of 4.2% for 2026. The experts assume that the improved starting position resulting from the significantly lower deficit in 2025 will roughly balance out the risk of an economic slowdown due to current geopolitical events.      

The German government's goal remains to achieve a deficit of 3% of GDP in 2028 and to continue the successful reorganisation of public finances. Negotiations on the 2027/28 double budget will begin after Easter. Planning certainty, stability and orientation are particularly essential in the highly volatile geopolitical situation. Especially in crisis situations, we need room for manoeuvre that is made possible by structural reforms and sensible restructuring measures.

"With the deficit of 4.2% of GDP in 2025, the federal government has fulfilled its task of returning Austria to a stable budget course. Without consolidation measures, the budget deficit would have been 5.8% of GDP in 2025," recalls Finance Minister Markus Marterbauer. "The path we have taken so far must be consistently pursued. By strictly implementing the budget, we are creating room for manoeuvre so that we can intervene quickly and in a targeted manner in crisis situations."

State Secretary of Finance Barbara Eibinger-Miedl: "Austria has successfully initiated the turnaround in the budget, the consolidation course we have embarked on is working. This is confirmed by the current budget notification figures for 2026. Our goal remains clear: Austria should emerge from the EUdeficit procedure again in 2028. This will require a sustained, nationwide effort on the part of the federal, state and local governments - with budgetary discipline and reforms. We will also pursue this path together with the 2027/28 double budget."

State Secretary Sepp Schellhorn: "We are on the right track, but we are still a long way from reaching our goal. The real levers lie in the structures. Anyone who postpones reforms now is squandering the scope for urgently needed relief. We have to keep at it, keep at it, keep at it."