Salzburg coalition weighs cuts and investment in 2027-28 budget

Salzburg’s black-blue state government is continuing talks on its 2027-28 budget, with final details due to be settled on Tuesday morning, ORF reports. The budget will determine where the government cuts spending and where it invests.

The government expects new borrowing of nearly 400 million euros this year, falling to 250 million euros next year and 150 million euros in 2028, an election year.

Health spending, which totals about 1.4 billion euros or nearly a third of the budget, is also likely to face cuts. The staff Christmas party at Salzburg’s state hospitals has already been cancelled this year, and hospitals are closely monitoring their use of materials. At the same time, one billion euros is due to be invested in new buildings over the coming years.

In the social sector, some organisations have been asked to transfer their reserves to the state. Funding for measures under Care Platform III was agreed before the budget talks and is to come from additional support funds. The coalition is also expected to provide more money for subsidised housing.