Accounting of Territorial Authorities

2007 results

The budget volume of Territorial Authorities for 2007 was €184.7 bn. With 70.1% the Federal Government had the largest share, followed by the Länder excluding Vienna with 13.9%, the Local Governments excluding Vienna with 8.7%, Vienna with 5.7% and the Local Authorities with 1.6%.

Federal Government

In 2007, the Federal Government’s deficit from the General Budget was about €1.534 m (-35.0%) less than in the previous year. Both expenditure and revenue rose during the reporting year, whereas the revenue showed the greater increase.

Länder excluding Vienna

Viewing the Länder excluding Vienna, Lower Austria had the greatest total expenditure (€7.4 bn or 28.8% of total expenditure of all Länder excluding Vienna) in 2007, followed by Upper Austria (€4.8 bn or 18.7%) and Styria (€4.5 bn or 17.7%). Since 2002, Lower Austria has gradually included respectively will include all Local Government guided hospitals in its own budget (see also Chapter 3) – this is the reason for the continuous increasing of Lower Austria’s share of total expenditure considering Länder excluding Vienna. Upper Austria has had no debt at all since 2002. Debts in Carinthia and Lower Austria have risen continuously since 2002.

Vienna

In the reporting year Vienna’s expenditure and revenue were €10 524 m, which means an increase of 3.7%. €2 260 m was spent on personnel – 21.5% of the whole budget, what means a decrease of 0.4 points of percentage for this special part of the budget.

Local Governments excluding Vienna

Overall the Local Governments excluding Vienna realized a surplus of €58 m. The Local Governments of Carinthia, Lower Austria, Upper Austria, Tyrol and Vorarlberg realized a total surplus of €71 m while the Local Governments of the remaining Länder closed down with a deficit of €13 m.

29.3% (€4 706 m) of total expenditure (€16 084 m) was spent on salaries and wages and investments. €1 349 m (8.4%) was spent on amortization and interest payments. Compared with the previous year the Local Governments’ investment activities – not including the purchase of property and investment subsidies – increased by €13 m (+1.0%). Only the Local Governments in Styria, Tyrol and Vorarlberg showed a decrease in expenditure on investments of €55 m in total. For the remaining Local Governments this item increased by €68 m.

Regarding the total revenue of €16 141 m, 45.1% was generated by tax revenues of Local Governments (€2 626 m) and shares of the yields out of joined federal taxes (€4 658 m). The tax revenues of Local Governments excluding Vienna grew by 5.2% (€130 m). The increase in tax revenues of Local Governments viewed by Federal States ranged between 3.0% (Burgenland) and 6.0% (Lower Austria).

Financial Equalization

The Financial Equalization Act (FAG) – current version: FAG 2005 for the FAG period 2005 to 2008 – regulates authority over the revenue generated by each type of taxes. The Act stipulates specific amounts that are deducted from the total revenue yielded by joined federal taxes before the revenue is disbursed among the individual “financial equalization partners” in accordance with a defined code. Amounts specified in detail in the Act are in turn deducted from the resulting shares for specific purposes. After this procedure the ultimate sums available for disbursement to Federal Government, Länder and Local Governments can finally be determined. A further 12.7% is deducted from Local Governments’ shares and is transferred to Länder for granting payments for special requirements to Local Governments and Local Authorities. With its special status as Land and Local Government the federal capital Vienna is shown separately in all tables. In addition to the disbursement of revenue generated by taxes, the Financial Equalization Act deals with transfers (non-reimbursed cash benefits) that are made in accordance with legal stipulations at federal or land level and that serve to enable the receiving authority to fulfil its obligations. These transfers include:

Compensation of the salaries and wages of teachers employed by Land (current benefits and pensions including care allowances)
Subsidies and grants for specific purposes from Federal Government to Länder and Local Governments
Subsidies and grants for specific purposes from Länder to Local Governments and Local Authorities
Special fees (“Landesumlage“, special fees of social assistance and educational Local Authorities)

Tax yield net (after reduction of transfers for contribution-payments to EU) – sum of Federal -, Länder -, Local- taxes as well as joined federal taxes - increased 2007 by 6.8% (2006: +5.5%; 2005: +1.8%).

Table(s):
Total Revenue 2004 - 2007
Total Expenditures 2004 - 2007

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