Last-minute agreement on the budget for 2024
Published: Thursday, Dec 21st 2023, 13:40
Updated At: Thursday, Dec 21st 2023, 13:40
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As planned, the federal government will be able to make a contribution of CHF 20 million to the UN Palestinian Relief and Works Agency (UNRWA) in 2024. However, it will have a total of CHF 10 million less at its disposal for humanitarian activities. CHF 12.5 million will be paid into the Regional Policy Fund. This was agreed by the councillors on Thursday when discussing the budget. It is now under the roof.
The agreement on the federal budget and the financial plan for the years 2025 to 2027 was reached at the last minute. After the Council of States, the National Council also adopted the proposal of the conciliation conference on Thursday afternoon.
The upper chamber approved the two federal resolutions on the budget by 109 votes to 85 with no abstentions and 168 votes to 27 with one abstention. The Council of States had already voted in favor with a clear majority at the beginning of its meeting on Thursday morning.
Payment in tranches
The Federal Council had requested CHF 20 million for UNRWA from Parliament. The Council of States originally wanted to approve the entire amount, while the National Council voted to delete it.
The resolution that has now been approved does not mention UNRWA by name. It consists of two elements: Firstly, it provides for a funding cut of CHF 10 million in the Foreign Ministry's credit for humanitarian actions - whereby the Federal Council can decide for itself where to make savings.
Secondly, the resolution sets out the framework conditions for the disbursement of humanitarian aid for the Middle East. The funds must be disbursed in tranches - and it is explicitly stated that they should exclusively benefit the civilian population.
In addition, the Federal Council must consult the Foreign Affairs Committees of Parliament before disbursing contributions. However, it remains free in principle to spend CHF 20 million to support UNRWA as planned - as Switzerland had originally promised the United Nations.
SVP speaks of deceptive packaging
A minority of SVP members of the finance committees unsuccessfully requested the rejection of the agreement proposal. The problem that UNRWA employees had glorified terror against Israel and stirred up anti-Semitism was not addressed by the new proposal.
"The conciliation conference is not presenting us with a lazy compromise, but no compromise at all," said SVP National Councillor Lars Guggisberg (BE). He spoke of a deceptive package.
The adoption of the agreement proposal also means that Parliament will approve CHF 12.5 million for the Regional Policy Fund. The Council of States originally wanted to approve twice this amount, while the National Council wanted to dispense with the contribution altogether.
The Councils also reached agreement on the financial plan for the years 2025 to 2027, extending the deadline for increasing military spending to 1 percent of gross domestic product to 2035.
The Council of States originally demanded that the target value be reached by 2030. The National Council, on the other hand, had spoken out in favor of the extension in the debate on the difference between the two - but ultimately only by a very narrow margin with a casting vote by Council President Eric Nussbaumer (SP/BL).
Last week, the councils had already agreed to reduce the contributions to the railroad infrastructure fund in order to comply with the debt brake. Following Thursday's decisions, the reduction amounts to CHF 38 million.
The Left voices fundamental criticism
This step became necessary in particular because Parliament decided not to cut direct payments to farmers when discussing the budget and increased funding for regional passenger transport by CHF 55 million compared to the Federal Council's proposal.
With these decisions, Parliament deviated in certain areas from the extensive cost-cutting measures proposed by the Federal Council.
Parliament no longer had to decide on the fundamental issues on Thursday. Nevertheless, the SP and the Greens used their parliamentary group votes for general criticism. The left wing of the Council once again criticized the increase in army spending. In addition, the debt brake was too rigid.
"It's not our budget," emphasized SP National Councillor Sarah Wyss (BS). Making a cross-sectional cut of two percent across all areas, but excluding the army and agriculture, is unbalanced.
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