Cantons face unequal challenges

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According to the report approved by the Bundesrat on Wednesday, population growth and aging in all cantons can be expected to lead to a stronger increase in expenditure than income. However, the budget deficit in cantons where population growth will be slower and people will age faster will be larger than in other cantons, the government writes in the statement.

Fiscal equalization will compensate for this uneven development by guaranteeing all cantons a minimum of resources. In particular, the cantons that were particularly hard hit would benefit from higher compensation payments from the cantons with the most resources. Meanwhile, the donor cantons would show above-average economic growth, as a result of which their higher remittances would be offset by higher tax revenues.

The report also assumes that other factors, such as immigration and emigration or tax policy, will have a significantly greater impact on tax equalization than demographic developments over the next 30 years. The Bundesrat currently sees no need for adjustments to the equalization system. In addition, the development of financial equalization is reviewed every four years. An “unfavorable development” would therefore be recognized in good time.

The Bundesrat had the report drawn up on behalf of the parliament. The three largest spending areas, which are primarily the responsibility of the cantons, were examined: education, health care and social security.

(SDA)

Source:Blick