Overview
- The cabinet approved the 2027 draft on Tuesday, July 14, 2026, proposing a record €115.5 billion spending plan that includes €5 billion in new debt.
- The government earmarks €44.4 billion for education and child services, the single largest post, and plans expanded all-day school places and more teaching staff.
- To offset weak tax receipts the draft requires about €1.45 billion in savings across ministries and foresees cutting roughly 550 ministerial administrative posts by 2030.
- A new municipal finance law raises the municipal share of tax revenue by 0.5 percentage points to 23.5 percent, sending about €17.1 billion to local governments after the state assumed €8.9 billion of municipal legacy debt.
- Optendrenk tied the measures to seven years of regional stagnation, cumulative revenue shortfalls and recent global conflicts, and left undecided the coalition pledge for a third fee-free kindergarten year.