Continuing Reduction in the Budget Deficit

In 1990 the Austrian federal government continued its efforts to reduce the budget deficit. According to plan the net deficit was reduced to 3.5 percent of GDP. The federal budget had a slightly restrictive effect. The 1991 budget is designed to have a slightly expansionary effect. This is achieved despite the fact that the net deficit will be further reduced to 3.3 percent of GDP. The budget plan for 1991 reveals that in the medium run it will become increasingly difficult to reduce the deficit further, since the savings potential of a number of expenditure items has already been depleted.