Debt level rises

Innsbruck’s budget deficit larger than expected

Mayor Anzengruber (center), Finance Director Rupprechter (left) and GR Lukovic.(Bild: IKM/K. Rudig)

Innsbruck's mayor Johannes Anzengruber presented the final draft budget: The city's liquidity had been secured by "Kassenstärker". A 10 percent spending freeze will be introduced for government offices.

There is a wider gap between incoming and outgoing payments in Innsbruck than initially assumed. This is due to the correction of federal revenue shares. The deficit is now 11.4 million euros instead of around 6 million euros as originally assumed. In order to ensure liquidity, the city has, as reported, taken on around 35 million in new debt as a "cash strengthener".

Buffer built in
However, the deficit does not have to remain so large: "We are budgeting very carefully and have built in buffers. For example, salary increases of 4.6 percent have been factored in - in reality, salaries will only rise by 3.5 percent," said City Manager Anzengruber, Finance Director Martin Rupprechter and Dejan Lukovic (Greens), Chairman of the Finance Committee.

A traffic light system will be introduced to identify budget deviations at an early stage so that countermeasures can be taken. This city government thinks in terms of generations, not election dates.

Bürgermeister Johannes Anzengruber

Bild: Christof Birbaumer

The city coalition will invest around 57 million euros to secure the location and strengthen the regional economy. "Together with the IIG and IKB holdings, we are investing as much as 190 million euros in the city and creating added value for the population," emphasized Anzengruber.

"A blind austerity course would be poison for the city"
A blind austerity course would be poison for the city, the economy and society, said Lukovic. In this context, he also holds the state and the federal government accountable, which must not capitulate to the recession: "In times when companies, banks and private individuals are making savings, the public sector cannot govern with savings alone. This will only fuel the recession and is tantamount to capitulating to it. While we in the city make sure that we keep the economy going and send the right signals to the outside world, the state and federal government are sorely lacking in action here. The municipalities and their residents need financial support now, not unobjective austerity measures."

This could be ensured, for example, by covering the costs of educational leisure staff, through a reform of the municipal property tax or new investment packages that would relieve municipal budgets by millions.

Traffic light system warns of budget overruns
A 10 percent spending freeze is imposed on the offices and departments. This means that 10 percent of cover classes and subsidies will be withheld until September 30. In addition, the quarterly budget controlling 2025 will be based on a traffic light system, which is intended to identify critical deviations from the budget at an early stage so that suitable countermeasures can be taken.

"Controlling didn't exist before and is now new. Without strict budget discipline, responsible management will no longer be possible in the future. This municipal government thinks in terms of generations - not election dates," explained Mayor Anzengruber.