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Vienna. It looked like a marketing event. In the Sky Café, above the rooftops of the city, Peter Hanke presented his first budget Monday night as city councilor. As appropriate for a good presentation, there was first a film about the image in which the city of Vienna applauded their planning. "Healthy economies and smarter forms" will make Vienna more efficient and more efficient, it means. The video will be available on Instagram.
The central message of this year is nevertheless rewarding: Vienna wants to make less debt in 2019 than in previous years. For 2020, Hanke (like her predecessor Renate Brauner) is aiming for a zero deficit. That it can work? A five-point badysis:
1. What will be the new debt of Vienna in 2019?
188 million euros. Vienna wants to redouble so much debt in 2019. In total, they will reach about seven billion euros by the end of 2019. Nevertheless, Hanke sees an improvement over the previous year. After all, Vienna plans to incur a debt lower by 50% than that of 2018 (376 million euros). If the zero deficit reaches 2020, he wants to repay his debt from 2021. He did not want to pledge for an amount.
2. In which areas does Vienna want to save in 2019?
In person. The city's expenditures, which amount to 15.7 billion, are increasing. For example, it plans to invest 1.75 billion euros more in education. That's 8.25% more than the year before. The money will be invested in about 100 new clbades, which wants to finance the rapidly growing city. Viennese children 's gardens are also investing an additional 2.61% to the tune of 865.44 million euros. Investments in companies represent 2.6 billion euros (plus 7.7%). For example, Wiener Stadtwerke is investing $ 800 million in the subway extension. Health spending is particularly high in 2019, rising from 2.2 to 4.3 billion euros. The reason is the transformation of the hospital badociation into a public law institution. As a result, the KAV budget is no longer presented separately, without the conversion expenses of KAV, or 2.08 billion euros and an increase of 3.29%. Incidentally, the North Hospital will contribute about 120 million euros to the investment cost subsidy. Social spending reached 2.1 billion euros (+ 8.91%). The minimum income remains the same, around 670 million euros. For this, the Social Provident Fund receives an additional 200 million euros, which are needed for care according to the city. Incidentally, Vienna lost its fourth place in the ranking of debt per capita in 2019, falling to fifth place.
3. How can the city still borrow less?
Hanke benefits from two factors. On the one hand: the flourishing economy. The city forecasts economic growth of 2.8% for 2018 and a low unemployment rate (113,418 unemployed). On the other hand, the structural reform of the administration with 250 measures. The city has grown since 2004 the size of Graz, but the number of magistrates employees has remained the same. 500 million euros to bring structural reform by 2020. As well: the developed city receives more money from the federal government.
4. Why is Vienna not running a zero deficit this year?
Hanke does not want to save on his expenses but wants to invest. "I do not think the theme of the economy is more urgent if we know that the city is growing by 15,000 people a year," he said. Theoretically, a zero deficit would have been possible this year. If the expenses remained the same as the year before.
5. Why is the zero deficit not fixed?
For the zero deficit to start in 2020, Vienna still needs an economic growth of 1.9%. "At the moment, we are optimistic because economics researchers say we are reaching the numbers," Hanke said. But the Vienna budget also depends on the federal government. If this reduces taxes or increases pressure on the Länder, the Vienna 2020 plans will be obsolete.
("Die Presse", printed edition, 31.10.2018)
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