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Short- and Medium-Term Prospects of Fiscal Policy. Draft Federal Budget 2014-15 and Federal Medium-Term Expenditure Framework 2015-2018

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  • Margit Schratzenstaller-Altzinger

Abstract

Framework conditions for fiscal policy remain difficult: besides the medium-term outlook of only moderate economic growth, the liquidation of Hypo Alpe-Adria-Bank International AG will weigh on the budget. The need for further subsidies to (partly) nationalised banks in distress cannot be ruled out. Due to statistical revisions, the public debt ratio for 2013 rises to 81.2 percent of GDP. With the draft federal budget for 2014-15 and the Medium-Term Expenditure Framework 2015-2018, the federal government pursues its strategy of consolidation. By 2016, the structural deficit is to be brought down to 0.4 percent of GDP. There remains the need for a fundamental overhaul of the current tax system with its heavy burden on labour, and for further expenditures for education including universities, child-care and research and development to strengthen long-term growth and employment potentials of the Austrian economy.

Suggested Citation

  • Margit Schratzenstaller-Altzinger, 2015. "Short- and Medium-Term Prospects of Fiscal Policy. Draft Federal Budget 2014-15 and Federal Medium-Term Expenditure Framework 2015-2018," WIFO Bulletin, WIFO, vol. 20(3), pages 31-46, February.
    • Handle: RePEc:wfo:wblltn:y:2015:i:3:p:31-46
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    References listed on IDEAS

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    1. Josef Baumgartner & Serguei Kaniovski & Markus Leibrecht, 2014. "Subdued Economic Growth, High Unemployment and Fiscal Consolidation Shaping the Economic Outlook. Medium-term Forecast for the Austrian Economy until 2018," WIFO Bulletin, WIFO, vol. 19(3), pages 21-34, March.
    2. Serguei Kaniovski & Hans Pitlik & Stefan Schiman-Vukan, 2013. "Economic Growth to Remain Subdued Over the Years to Come. Medium-term Forecast for the Austrian Economy Until 2017," Austrian Economic Quarterly, WIFO, vol. 18(1), pages 15-24, April.
    3. Margit Schratzenstaller-Altzinger, 2012. "Between Consolidation and Growth: Federal Financial Framework 2013-2016, "Consolidation Package II" and Stability Programme," Austrian Economic Quarterly, WIFO, vol. 17(3), pages 187-206, September.
    4. Margit Schratzenstaller-Altzinger, 2011. "Draft Federal Budget for 2011 Takes First Steps Towards Consolidation," Austrian Economic Quarterly, WIFO, vol. 16(1), pages 35-56, March.
    5. repec:wfo:wquart:y:2014:p:21-34 is not listed on IDEAS
    6. repec:wfo:wquart:y:2014:i:3:p:21-34 is not listed on IDEAS
    7. Stefan Ederer & Serguei Kaniovski & Hans Pitlik & Thomas Url, 2012. "Slow Upturn Following Soft Patch in 2012. Medium-term Forecast of the Austrian Economy until 2016," Austrian Economic Quarterly, WIFO, vol. 17(1), pages 12-23, February.
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    Cited by:

    1. Angela Köppl & Margit Schratzenstaller-Altzinger, 2015. "The Austrian Tax System – Status Quo," WIFO Bulletin, WIFO, vol. 20(5), pages 55-71, April.

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