Upper Austria plans 236 million euro deficit for 2027

Upper Austria plans a 2027 state budget with a financing deficit of 236 million euros while slightly increasing investment, ORF reported. The plans prioritise healthcare, childcare, housing, transport, artificial intelligence and digitalisation.

The state has earmarked 798 million euros for investment, up from 792.9 million euros in 2026. A separate innovation and investment programme will provide 103.8 million euros, Finance Minister and Governor Thomas Stelzer of the Austrian People’s Party (ÖVP) said at the budget presentation. A 10 per cent credit freeze, worth 46.9 million euros, will remain in place.

With revenues of 10.05 billion euros and spending of 10.28 billion euros, the projected deficit is lower than the 265.15 million euros expected this year. Stelzer said Upper Austria would meet the Maastricht criteria again in 2027. The state’s total debt is forecast to rise from 1.5 billion euros to about 1.8 billion euros.

Healthcare funding is set to increase by 8 per cent to 1.93 billion euros. The agricultural budget will rise by 8.6 per cent to 103.2 million euros, while social spending will grow by 4.3 per cent to 858.9 million euros. Research and science funding is due to increase by about 5 per cent to 134.6 million euros.

Childcare funding will rise by 2.5 per cent to 464 million euros. The state says the money will fund 500 additional crèche places and 220 additional kindergarten places. Road construction funding will increase by 4.9 per cent to 228.8 million euros, while public transport funding will rise by 0.5 per cent to 269 million euros. Funding for digitalisation and broadband will remain at 11.8 million euros.

The 103.8 million euro innovation and investment programme includes 21 million euros each for artificial intelligence and tourism, and 24 million euros for construction projects. It also includes 7.5 million euros for heat-protection measures for the first time.

Stelzer said the budget would leave room to stimulate the economy while reducing borrowing. He described growth of around 1 per cent as insufficient. Deputy Governor Manfred Haimbuchner of the Freedom Party of Austria (FPÖ) called it “a budget we can show off” and said it would bring no new burdens for residents. The state parliament is due to approve the budget in December.

Social Democratic Party state leader Martin Winkler welcomed the funding for heat protection, saying his party had pushed for the measures, but said he wanted more ambition on housing and energy. NEOS state leader Felix Eypeltauer cautioned against celebrating a projected deficit of 236 million euros. Green Party parliamentary leader Severin Mayr called the budget a “duty exercise” and said the coalition had yet to set out a clear direction for Upper Austria.