Global Biz

Austrian budget deficit reaches 3.4% of GDP in '09

(Xinhua)
Updated: 2010-03-30 05:50

VIENNA - Figures published by Statistics Austria on Monday showed a deficit of 3.4 percent of gross domestic product (GDP) in 2009, and a public debt amounting to 66. 5 percent of GDP, or 184.1 billion euros while the state revenues fell by 5 percent, or 4.1 million euros.

Not only the negative huge impact on Austrian economic growth, but also an increase in unemployment rate are caused by World economic crisis, resulting in a drop in the personal income tax and corporate tax, which directly led to the reduction of state revenue.

The personal income tax fell by 6.5 percent, or 1.5 billion euros in total. Corporation tax reduced by 34.1 percent, or 2.2 billion euros.

The capital gains tax and capital gains tax on interest also decreased by 27.2 percent (429 million euros) and 14. 1 percent (309 million euros) respectively.

The latest figures of Statistics Austria also showed that Austrian national debt increased by 3.9 percent, or 7.6 billion euros compared to the same period of the previous year. The current Austrian national debt amounts to 184.1 billion euros, or 66.5 percent of GDP in 2009.

The actual financial expenditure of Austria reached 143.4 billion euros in 2009, of which the social item amounted to 59.8 billion euros, 41.7 percent of the total expenditure.

As the increasing number of Austrian retirement and unemployment, the social item becomes the largest one of Austrian state financial expenditure.

Last year, the Austrian public health expenditures amounted to 22.7 billion euros, 15.8 percent of total expenditure. The state general administration expenses got to 19 billion euros, 13.2 percent of total expenditure.
In 2009, the Austrian financial allocation for education also accounted for 11 percent of its total expenditure.