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Chief Financial Officer Franziska Bitzi-Staub (center) told media on Monday about the planned tax cut: “We don’t want to take in more than we want to spend.” There is no point in accumulating more equity capital. The reserves are large enough to bear the risks.
The financial development in 2023 led to the understanding that revenues from corporate tax will increase sustainably over the next few years, resulting in a profit of 54 million francs instead of a deficit of 20 million francs.
The reason for this is tax revenues. These are expected to increase by 76 million francs according to the budget this year and by 46 million francs according to the 2022 bill, said Roland Brunner, head of the city’s financial administration.
Despite the decrease in the tax rate, the city government budgets 56 million francs more tax revenue for 2024 than the 2023 budget. The lower tax rate leads to a decrease in revenue by 20 million francs.
Lucerne city council foresees an operating deficit of 15.1 million francs, operating expenses of 701.8 million francs and operating income of 686.7 million francs in the 2024 budget. Thanks to the positive financial result, an operating profit of 10.0 million francs was achieved.
The net expenses of the directorates increased by 20.4 million francs compared to the 2023 budget, reaching 458.1 million francs. The city council attributes this to inflation, population growth and the expansion of services. Wages of administrative personnel are expected to increase by 2 percent in 2024.
Net expenditure in the field of social affairs increased by 6.0 million francs, in the field of education, culture and sports by 10.4 million francs, and in the field of primary schools by 4.4 million francs.
Gross investments in the 2024 budget are 103.3 million francs, which is 18.8 million francs more than in 2023. The biggest expenditures are on school construction projects in Littau, the port of Tribschen, cycle paths and public transport.
Investments are expected to continue after 2024. It was said at the media conference that this would see net assets fall from 209 million francs to 67 million francs.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
