Bank Austria with new planning tool for Austrian local authorities:
New analysis tool "Planning with the debt brake" supports investment planning
- Municipal forums met this year in Innsbruck and St. Pölten under the title of "Planning with the debt brake".
Based on the so-called "debt brake" and the stability pact adopted in early July, local authorities are obliged to reduce public debt step-by-step until 2016. Accordingly, annual new debt from 2017 is capped at 0.45 percent of the Austrian gross domestic product, and the local authorities also have to cut back: the structural deficit of the local authorities may not exceed 0.1 percent from 2017. Nonetheless, further investments must be made to maintain the quality of life in the individual municipalities. To achieve this balancing act, Bank Austria and the KDZ – Centre for Administrative Research – have provided local authorities with another analysis tool, the "Planning with the debt brake" tool.
Wolfgang Figl, Head of Public Sector at Bank Austria: "Austrian local authorities are in a very tough position: on the one hand they have to cut spending, lower debts and reduce deficits, while on the other hand they are entrusted with an increasing number of tasks and have to make the necessary investments to ensure services of general interest continue to be maintained. With our sixth and new analysis tool, "Planning with the debt brake", we want to help local authorities as they walk this tightrope. This expansion to the already well-known and successful investment and planning tool means that local authorities can calculate how to fulfil the debt brake requirements whilst still being able to invest in infrastructure and projects of general public interest. Consequently, local authorities are able to plan their resources on a sustainable basis, which is vital just now."
Another new function of the planning tool aims amongst other things at increasing the precision of planning and forecasting revenues as well as the planning and projecting of own taxes. "This enables local authorities to make more accurate estimates of their financing costs and plan capital transfers better", said Figl, talking about the new additional function of the tool.
Bank Austria and the KDZ have implemented a whole range of analysis and planning tools over the last few years, starting in 2007 with a tool on creditworthiness and risk assessment. The municipal forums in 2008 and 2009 were devoted to demographic issues and the development of planning tools for child care as well as for elderly and nursing homes. 2010 saw the creation of the first investment and planning tool, which was expanded in the following years with significant functions. These planning tools are already deployed by a great number of towns and municipalities.
Bank Austria has been supporting the public sector for decades, and a special "Public Sector" unit was created in 2005 to handle the needs of this group of customers. With a transaction volume of EUR 12 billion, financing of EUR 8 billion and approximately 3,000 clients, Bank Austria as a universal bank is today the undisputed market leader in this segment among individual institutions.
The expanded version of the investment and planning tool based on "planning with the debt brake" is already available free of charge to Bank Austria customers together with all the previous analysis tools at www.praxisplaner.at.
Enquiries: Bank Austria Press Office Austria
Julia Wegenstein, Tel. +43 (0) 50505 - 52854
A reproducible photograph of the municipal forum in Innsbruck can be downloaded from our website at www.bankaustria.at > Presse > Pressefotos. Copies are free.
back to the summary