OECD Economic Surveys: Austria 2011
Hide / Show Abstract

OECD Economic Surveys: Austria 2011

The 2011 edition of OECD's periodic review of the Austrian economy.  This edition includes chapters covering public sector inefficiencies and reforming the health care system.

Click to Access: 
    http://oecd.metastore.ingenta.com/content/1011131e.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/oecd-economic-surveys-austria-2011_eco_surveys-aut-2011-en
  • READ
 
Chapter
 

Public sector inefficiencies have become less affordable You do not have access to this content

English
Click to Access: 
    http://oecd.metastore.ingenta.com/content/1011131ec004.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/oecd-economic-surveys-austria-2011/public-sector-inefficiencies-have-become-less-affordable_eco_surveys-aut-2011-4-en
  • READ
Author(s):
OECD

Hide / Show Abstract

Performance of fiscal policy, while good in international comparison, is not sufficient to prepare for future ageing related spending increases. Given favourable macroeconomic conditions, the pace of consolidation could be more ambitious than currently planned, with a view to reducing the debt burden below 60% of GDP by 2020. Austrian fiscal policies have tended to be pro-cyclical in upturns, mainly because spending was not adequately kept in check. Stronger fiscal rules and a reform of inter-governmental fiscal relations could help contain expenditure dynamics. Efficiency-raising reforms in key spending areas such as pensions and other social expenditures, health, and education are also highly needed to reduce spending and ensure the provision of high-quality public services at lower cost. In this regard, Austria should make full use of the performance budgeting framework it plans to introduce from 2013. Higher potential growth could also take off some of the pressure on public finances. There remains significant room to rebalance the tax structure towards less distortive sources of revenue, thus supporting employment and growth.
Also available in French
 
Visit the OECD web site