NRR: Only higher taxes can cover budget revenue shortfall

(CIANEWS) - In addition to addressing the current problems with the energy crisis, proposals should be developed to strengthen the revenue side of public budgets. The National Budget Council (NRR) stated this in its quarterly assessment of public finances and fiscal and budgetary policy, adding that consolidation of public finances will require tax increases, as the abolition of the super gross wage and the rise in the taxpayer rebate from autumn 2020 cannot be fully covered by spending cuts. Nor, unfortunately, can there yet be any talk of improving long-term sustainability. This is particularly the case for the pension system, which will start to fall into significant deficits in the 2030s. The changes being discussed in the advisory team on pension reform are more in the nature of piecemeal adjustments that often reduce the sustainability of the system. In the NRR's view, insufficient attention is also paid to the reform of Pillar 3.



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