Vienna deficit 2024: Better than feared – opportunities through investments!

Vienna deficit 2024: Better than feared – opportunities through investments!

The financial results of the City of Vienna show a positive trend at the end of 2024. According to the latest data, the city's net result is -124.3 million euros, which represents a significant improvement compared to the estimate in Vienna's double budget 2024/2025. This is welcome news, particularly as the actual deficit of €1.77 billion is around €500 million below the budgeted loss of €2.24 billion. 5min.at reports that financial challenges have been compounded by an economic crisis and rising inflation-related spending in areas such as care and health.

The city's income amounted to 18.8 billion euros in 2024, while expenses were 18.9 billion euros. Total spending for the 2024 financial year was 19.9 billion euros, with a particular focus on social services, health, education, childcare and public transport. Together, these areas received over 11.4 billion euros, which accounts for more than half of the total budget. In detail, 3.3 billion euros flowed into social issues, 3.1 billion euros into health, 2.6 billion euros into education, 1.2 billion euros into childcare and 1.2 billion euros into public transport.

Liquidity and debt

Another positive aspect is the improvement in the net financing balance by 472 million euros, reducing the current balance to -1.8 billion euros. Operating management improved from -308 million euros in the 2024 estimate to +150 million euros in the 2024 financial statements. The financial debt of the municipality of Vienna was 11.9 billion euros at the end of the year.

Surprisingly, it was not necessary to make use of the liquidity authorization for Wien Energie, known as the “Vienna protective shield”, in 2024 because the liability cap was not exceeded. This discretion is critical to ensuring the city’s financial stability.

Expenses and investments

For 2023, the city of Vienna's budget volume is 18.9 billion euros, with investments totaling 3.3 billion euros. These investments exceed the original budget and include 1.4 billion euros for climate investments and 860 million euros for anti-inflation measures. City spending in the areas of health, social affairs, education and childcare amounted to almost 10 billion euros, which accounts for more than 50% of the budget. In this breakdown, the specific amounts are also very clear based on the numbers:

In terms of climate policy, Vienna is investing significantly in sustainable transport solutions, including in the expansion of electric and hydrogen buses and in renewable energies. The expansion of cycle paths is also an important project, with 20 new kilometers created in 2023.

Labor market and outlook

The labor market in Vienna is currently showing positive development: in April 2025 there were over 933,000 employed people, which corresponds to growth of 1.1%. At 11.5%, the unemployment rate is below the level before the economic crisis in 2019. Despite these positive developments, however, there are challenges, especially youth unemployment, which requires a new youth foundation, which is to be endowed with 15 million euros from 2025 to offer training opportunities to 1,000 young people.

Vienna's financial solidity is underpinned by assets of around 36 billion euros and reserves of 1.5 billion euros. Moody’s has assigned Vienna’s rating to Aa1, further reinforcing the city’s positive financial outlook. The public debate and the approval of the accounts for 2024 are expected at the end of June 2025. This development will also include the discussion and decision-making for the annual financial statements of municipal companies such as Wiener Wohnen and the Vienna Health Association.