The Bundesrat wants to save billions here in the coming years

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The waistband should tighten the belt. Shortages of up to three billion francs threaten in the coming years. That is why the Bundesrat on Wednesday specified the austerity program outlined at the beginning of the year.

He also wants to start with the tied expenses, which the federal government is legally obliged to do. In addition to the savings package of two billion francs for next year, billions less must be spent in the medium term. According to the Bundesrat, the statutory debt brake cannot be observed without these measures.

Save millions on unemployment insurance…

For example, the federal contribution to unemployment insurance (ALV) will be reduced by CHF 250 million per year for a limited period. However, an escape clause should ensure that the GMM does not run into financial problems if unemployment rises sharply as a result of the cutbacks.

The government also wants to start with the canton’s share of the direct federal tax and reduce it by at least 0.7 percentage point to 20.5 percent. This corresponds to a cost reduction of approximately CHF 200 million. The background is a draft for financing day care centers under discussion in parliament, which would cost the federal government about CHF 800 million per year from 2025. The Federal Council rejects the project.

… and rail infrastructure funds

As a further cost-cutting measure, the Federal Council wants to reduce the investment in the railway infrastructure fund by 150 million per year for a limited period of three years. This can be done without changing the law. According to the cabinet, the planned expansion of the infrastructure should not be called into question.

The consultation concept is scheduled for June. Measures in the AHV – especially in the field of widows’ pensions – must be taken with a separate model and will relieve the federal budget from 2026.

On Wednesday morning it was still speculated that Finance Minister Karin Keller-Sutter (59) wanted to propose cuts to AHV financing to the Federal Council. The federal contribution to the AHV should be reduced by CHF 190 million annually for five years, it said.

Package of measures will not be enough

However, this package of measures will not be sufficient to fully and sustainably eliminate the expected structural deficits.

The predicted high growth in expenditure on AHV, allowances and premium discounts, but also childcare outside the family, the army and migration expenditure should necessitate further cutbacks from 2025 at the latest. (Okay)

Source:Blick