Carinthia targets €1 billion in savings by 2028

Carinthia plans to continue cutting costs while prioritising health, care and social services, Finance Minister Gaby Schaunig said in a budget speech to the Carinthian state parliament on Thursday, according to ORF.

Schaunig said the 2027 budget would allocate more than one billion euros to health, care, social services and equal opportunities. The state plans to spend 4.12 billion euros overall, leaving a deficit of 383 million euros, including spending on education, affordable housing and infrastructure.

The budget continues a savings programme with a target of one billion euros by 2028. Schaunig said the state was on track to exceed that goal. The planned dissolution of the Carinthian Equalisation Payment Fund, which was set up to handle the Hypo case, will make 430 million euros available to repay older loans and reduce interest costs.

Schaunig estimated the repayments could save about 13 million euros in interest each year, or 130 million euros over ten years. Compared with the original 2024-27 financial plan, the increase in debt by the end of 2027 is expected to be almost 1.3 billion euros lower, she said.

She described Carinthia as a shared home where people should be able to live well and take responsibility, including for past financial decisions such as Hypo guarantees and foreign-currency loans.