1.4 billion instead of 4.8 billion: the federal government will incur less debt than feared

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The federal government will end 2023 with a financing gap of 1.4 billion francs. That is better than feared: Finance Minister Karin Keller-Sutter (60) had assumed a budget deficit of 4.8 billion francs in the budget.

Turnover developed well in line with expectations. In particular, direct federal tax and withholding tax, but also VAT, have made a larger contribution. But spending has also increased. The federal contribution to the AHV was 405 million higher than in 2022. Expenditure on premium discounts and supplementary benefits also increased (+259 million francs).

Net debt is 142 billion

For migration, protection seekers from Ukraine and asylum seekers, the increase is 773 million. However, the Ukrainian war refugees cost 600 million francs less than budgeted. Armament expenditure also increased by 265 million euros. And finally, the federal government spent 310 million more on education and research than in 2022.

Overall, the federal government spent less than expected last year, but more than the debt brake would have allowed. Net debt has therefore increased and now stands at 142 billion francs.

Army excluded from austerity exercise

To ensure that the 2025 budget complies with the debt brake, the Federal Council had already taken several austerity measures in January amounting to 2 billion francs. Moreover, he now decided to implement a linear reduction in the weakly committed expenditure, amounting to 350 million francs. This includes areas such as international cooperation, culture, agriculture, regional passenger transport, environment, location promotion and governance. The military must be exempted.

The latest cost-cutting decisions affect the so-called transfer and private domain of the federal government. The transfer expenses include all contributions from the federal government to third parties, for example to cantons, municipalities, institutions and social insurance companies.

Nevertheless, the Federal Council expects further deficits of billions of dollars for the years 2026 to 2028. “We need far-reaching measures here,” he wrote. A draft should be available by the end of March that fundamentally reviews all tasks and subsidies of the federal government. (sf/SDA)

Source:Blick