Austria : Selected Issues

Abstract

Austria’s federal system comprises the federal government and nine provinces (Länder). The federal system is rather centralized by international standards, with the federal government (including social security funds) accounting for about 70 percent of general government spending, the provinces accounting for 17 percent, and municipalities accounting for 13 percent as of 2006. In terms of expenditure responsibilities, the constitution lists all the competencies of the federal government, and anything not listed is generally handled by the Länder and municipalities.