Carinthian State Court of Audit Criticizes State's High Debt Burden

Debt Level and Per Capita Debt

Per capita debt increased within one year from 7,084 euros to 7,563 euros. This puts the debt per inhabitant at more than 7,500 euros. The public savings rate, at 2.4 percent, fell below the recommended minimum value of five percent for the third year in a row.

Around 639 million euros were spent on the education directorate alone. A further 587 million euros flowed into healthcare, and 512 million euros into care. Personnel expenditures amounted to 744 million euros and were thus around 13 million euros higher than the previous year.

State Court of Audit Director Günter Bauer warns of the consequences of this development. „Der hohe Schuldenstand schränkt die finanziellen Handlungsspielräume des Landes zunehmend ein und erhöht die Belastungen für künftige Budgets“, warns State Court of Audit Director Günter Bauer.

Criticism from the State Court of Audit

The Court of Audit's criticism is aimed at the fact that the state can only finance its investments "on credit." New financial liabilities of 544.74 million euros were necessary to handle ongoing expenditures and repayments – a clear signal of the structural imbalance.

The report also underscores the significance of expenditures on education, healthcare, and care. With a total of around 1.74 billion euros in these three areas, a large portion of state funds is tied up in the long term. This further limits the scope for additional investments or savings measures.

Expenditures on Education, Healthcare, and Care

The persistently low savings rate below the recommended minimum value is considered a warning signal for financial sustainability. If the development continues as it has recently, future budgets would have to bear higher interest and repayment burdens, further increasing the pressure on upcoming state budgets.

The State Court of Audit is submitting its report to the state government and the state parliament. The political debate over possible savings measures and consolidation of the budget is therefore likely to gather further momentum in Carinthia.