Of all places, at the Federal Ministry of Finance
Marterbauer’s Civil Service Cuts: A Shot in the Foot
The civil service cuts as part of the budget consolidation could turn out to be a shot in the foot, of all places, in Finance Minister Markus Marterbauer’s department. The announced cuts of 2,600 administrative positions will hit the tax offices and the Anti-Fraud Office particularly hard, yet it is precisely these agencies that are expected to collect billions in additional revenue...
At the end of 2025, Parliament decided to strengthen anti-fraud efforts with 30 additional positions, as the government expects significant additional revenue from combating tax and social security fraud. This anti-fraud package consists of three parts: data, taxes, and social security contributions—and is expected to contribute 1.44 billion to budget consolidation.
Staff cuts particularly affect the finance sector
Now there is concern that planned staff cuts will undermine these efforts. The budget consolidation is to be supported by a significant reduction in public sector jobs. The government’s goal is to reduce administrative staff by six percent by the end of 2029. This corresponds to approximately 2,600 full-time equivalents. The finance sector, of all places, will be particularly affected because teachers, law enforcement, the judiciary, and defense are exempt from the staff cuts.
Union warns of consequences of staff cuts
The tax officials’ employee representatives already issued a public protest earlier this week. The new chair of the GÖD tax union, Christine Pernsteiner, warned of the elimination of 500 permanent positions in her sector. She predicted reduced customer service and limited phone availability, delayed family allowance payments, and drastically longer processing times for employee tax assessments.
The Federal Ministry of Finance (BMF) sought to reassure the public. The goal, they said, is to make the administration more efficient. This would be achieved, for example, through the use of AI and digitalization and better utilization of resources. The Ministry of Finance and its staff would continue to reliably fulfill their core tasks.
Green Party finance spokesperson Nina Tomaselli doubts the government’s promises. “The SPÖ Ministry of Finance is falling far short of its announcements regarding revenue from fraud prevention. With fewer positions at the tax office, this goal will become even more unattainable. Cutting back on tax audits is saving in the wrong place. Every tax auditor generates revenue for the state that is many times their cost.”
Tomaselli aims to shed light on the matter with a parliamentary inquiry. She wants Finance Minister Marterbauer to specify exactly how many people currently work at the tax office, how many retirements are expected, and which positions will be filled. We can look forward to the answers.
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