Styria plans to limit new borrowing to €515 million in 2027

Styria plans to limit new borrowing to €515 million in 2027, €320 million below this year’s level, as the state government presents its budget on Thursday, ORF Steiermark reports. Details of where the cuts will fall were not available before the presentation.

The cap is intended to slow the state’s rising debt and meet the requirements of the stability pact, said Heinz Drobesch, director of the Styria Court of Audit. He said he hoped the budget would include structural measures whose effects may take several years to emerge.

Health, care and social services are among the biggest cost drivers, Drobesch said. He also sees scope for savings in the administration, including possible measures beyond the relatively moderate increases expected from general pay negotiations.

A recent analysis by the Court of Audit projected that Styria’s debt could exceed €10 billion by 2029. Finance Councillor Willibald Ehrenhöfer of the Austrian People’s Party said the state should continue reducing spending, with the federal government’s savings package offering guidance.

Drobesch said the state’s efforts to consolidate its finances had helped rating agencies raise Styria’s outlook to stable. He also welcomed the decision not to abolish the state’s ORF levy for now.

The Court of Audit says a far-reaching structural reform of the hospital system is essential to improve the budget deficit sustainably. Governor Mario Kunasek of the Freedom Party has said, however, that Styria should not be cut back too severely.