Aargau plans tax rebates due to good financial prospects
Published: Thursday, Aug 22nd 2024, 09:40
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The cantonal government of Aargau is forecasting a deficit of CHF 118 million for the canton's finances in 2025. As the figures look good in the medium to long term, a tax rebate should be possible in future in the event of surpluses, as the cantonal government announced on Thursday.
"Compared to the last plan, the original deficit in the 2025 budget can be significantly reduced," said Finance Director Markus Dieth (center) to the media in Aarau on Thursday. With total expenditure of 6.8 billion francs, the deficit of 118 million francs accounts for just 1.7 percent.
The canton's financial prospects have also improved in the medium term. According to the 2025-2028 task and finance plan, the deficits up to 2028 can be offset by the existing reserves built up over the last seven years.
Since 2016, the canton of Aargau has reduced debts of over 1.3 billion francs and also built up a reserve of 957 million francs. "The cantonal budget is healthy and robust. The canton's financial strength gives us the leeway to invest in the future," said Dieth, pointing out that Aargau had once again received the top rating with a AAA rating.
Discount for taxpayers
Due to this positive outlook, the government council is planning to return surpluses in the form of tax rebates when the financial situation is good. A bill on this is to be submitted for consultation this year. As Dieth explained, this would return "unneeded additional revenue to taxpayers".
The situation is also good with regard to the intra-cantonal financial equalization between the municipalities, which is co-financed by the canton. The government is therefore proposing to reduce the tax surcharge for this by one percent in 2025, thereby relieving the burden on residents and companies.
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