Top NewsRelief package - Municipal finance: Increases government allocations by 25 million euros

Relief package – Municipal finance: Increases government allocations by 25 million euros

In his opinion, the debate on municipal finance is “too polarised”, state governor Hans-Peter Toskozil opened the presentation of the municipal package. It also refers to the ÖVP’s criticism of the subsequent collection of missing hospital losses of 22 million euros (BVZ report, see article below).

The government is countering this with its own package: the central government’s roughly €45 million will be augmented by €25 million from “purely state funds”.

“Municipalities in Burgenland are under massive financial pressure,” Doskozil admits, adding that “urgently needed infrastructure projects” can be implemented with an increase in allocations from the financial balance. Municipalities burdened with free financing due to high interest rates should also be supported to a lesser extent. They need to get funds to meet their loan obligations in advance.

In addition, there are 3.7 million euros from the state school and kindergarten construction program, 2.2 million from the fire service program and eight million euros from future funds, which in turn are distributed by the federal government. However, there was a swipe at the federal government from the state governor: it “wanted to absolve itself of responsibility by making one-time payments related to the election campaign”.

Constitutional complaint in preparation

Toskozil also recalls the debate on fiscal balance, a well-known calculated example of how residents of Western Austria receive more per capita than those in Burgenland. It is “perhaps historically justified”, but it is not currently.

Municipalities in Burgenland receive the lowest in Austria. The already announced constitutional complaint – currently being prepared by the state – aims to fight what he sees as “improper distribution” of funds, Toskozil reiterated.

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For special funding for projects such as schools and kindergartens, community centers or fire brigade facilities, consultation days for the state’s special pot and communities should be maintained, Toskosil gave an overview of the latter. State elections, “If we win the elections”.

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