Fuad Vojic runs his restaurant not far from St. Stephen's Cathedral in the center of Vienna.

The handwritten menu offers a tourist-friendly mix of fried chicken salad, schnitzel and apple strudel.

Vojic achieved little notoriety last week for submitting the one millionth application for corona aid.

He received 150,000 euros.

That was a great support, he was quoted by the finance ministry, and: “We still hope that we no longer have to use it.” Finance minister Gernot Blümel (ÖVP) seconded: The economy is currently developing very well.

"Since a lot of Corona aid continues as before, there is no need for new aid measures."

Andreas Mihm

Business correspondent for Austria, East-Central and Southeastern Europe and Turkey based in Vienna.

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A week later the situation looks different. In Vojic's dining room, vaccinated and convalescent people are only allowed to dine and drink on weekends; Austria's gastronomy will be largely closed from Monday due to the fourth rush of droplets. A general vaccination requirement applies from February. Retailers, hotel and restaurant operators are calling for state aid and short-time working allowances, the tourism industry is trembling before another failed ski winter. Economic researchers put the losses at 1 billion euros per week. The finance minister reacted immediately: “We use the tried and tested instrument case. As a result, we are ready to go quickly and the entrepreneurs get their money faster. "

This could cause the 2022 budget, which was only decided on Thursday evening with votes from the ÖVP-Greens coalition, to falter.

Expenditures of 99 billion euros and income of 86.4 billion euros are planned.

At 2.3 percent (after 6 percent in 2021), the now planned deficit should again comply with the Maastricht criterion of 3 percent, even if the deficit may not decrease as much as planned.

More money for climate protection, less for work

Because the reduction in borrowing is mainly due to the expected strong growth and higher income - with low interest rates for servicing the loans. In the next year, price-adjusted income is expected to exceed the pre-crisis level. The finance minister expects 4.8 percent growth in the next year after the current 4.4 percent. The debt ratio is expected to decrease slightly to 79.1 percent. The greatest increases in spending are for climate protection. Science and education as well as home affairs also recorded increases. Less expenses are factored in for the Ministry of Labor because of the - so far - falling number of short-time workers and unemployed.

But the details of the budget are not in the public eye these days.

The only deals with the debate about further steps to contain the rampant pandemic and freedom of movement, not just for the unvaccinated.

A key part of the budget, the core part of the coalition agreement, is no longer noticeable: the eco-social tax reform.

"Regional climate bonus"

This should bring the state 500 million euros in additional income per year from January, due to the increasing pricing of CO2 emissions with initially 30 euros per ton. There is also relief: from mid-2022, for example, a “regional climate bonus” of 100 to 200 euros per household. In addition, the tax rates on incomes from 18,000 to 30,000 euros will be reduced by 5 points to 30 percent and those up to 60,000 euros by 2 points to 40 percent. Tax-deductible costs in the “family bonus” per child also increase by EUR 500 to EUR 2,000 per year. Companies now only have to pay 23 percent instead of 25 percent corporation tax on profits.

Nevertheless, the draft is not immune to criticism. Although the relief for employees is gratifying, large parts of the tariff relief will be wiped out again by the cold progression by 2024 at the latest, complains the economically liberal think tank Agenda Austria. Because the state does not adjust its tax rates to rising inflation and enriches itself with it.

There is also another ongoing lawsuit from economic researchers: The government is refusing to reform the pension system.

With a subsidy of 12.5 billion euros for pension insurance and 10.8 billion euros for civil servants, expenditure on old age eats up almost a quarter of the budget.

That is why there are increasing demands for a longer working life and an increase in the retirement age based on the German model.

The regular pension for men in Austria begins at 65 and for women at 60, only for women born after 1968 it increases gradually to 65 years.