08.04.2021  |   Opinion

The situation of federal finances

The Federal Performance Commissioner has communicated fact sheets on the situation of federal finances to the parliamentary Budget Committee

The federal finances are still suffering under the strain caused by the COVID-19 pandemic. Federal debt levels in particular reflect the severe financial situation. From 2020 to 2022, federal borrowing has soared from zero to more than €450 billion. This has triggered an enormous debt avalanche. It is unrealistic to believe that economic growth alone will ensure curbing public debt. Specific fiscal programmes and structural reforms are needed to restore the leeway the government needs to act in the aftermath of the pandemic.

The Federal Performance Commissioner has studied the federal cabinet resolution adopted on 24 March 2021 on targeted budget figures and informed the parliamentary Budget Committee on the situation of federal finances.

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